Trying to find my niche

[Brad Cook]

I've been doing as much reading, listening and educating myself on real-estate investing and one of the strategies I really lean towards is house flipping. So, my question is should you rent the property after rehabbing and then flip after the time frame so you will not be taxed extra?

[William Harvey]

@Brad Cook I agree with @Eliott Elias here. Takes time to figure out what you enjoy and what you don't. I quickly learned that I loathe managing tenants and am way better suited in deals where I am not responsible for that. For instance, I have a partner and him and I have been buying STR's and hospitality properties. My focus is solely on the financing side of things. My role is to work with lenders, banks, investors, etc and come up with the money to purchase the property and execute our game plan. His role is to deal with all property related things such as outfitting the rooms, dealing with our property manager, etc. I am completely disconnected from all aspects of managing the property, which is a beautiful thing! I also flip properties because there is no managing tenants in that scenario either (although managing contractors isn't much better!)

To touch on your comment about taxes, while this is a good idea in theory, I think there are too many variables at play to make this a viable long-term strategy. For instance, if you did this over the last year and went to sell in the current market, you probably wouldn't do too well. I think it is best to decide ahead of time whether you are going to flip the property, or turn it into a rental. If this is your plan but you have the ability to hold the property longer in case you have to, then I don't see anything wrong with this. But to rely on this strategy alone seems like it could get you into trouble.