Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
14y
My very first deal about 6 or so years ago was a flip.
Made about 20k and thats what got me hooked.
However, about a year later the market turned
and I went solely buy and hold.
I actually bought one about a year ago with the intent
to flip but I didn't have the patience for it. Saw the
missed rent opportunity go by for 6 weeks and I couldn't
hold out. Put it up for rent and rented in a week.
Just not sure I want to part with anything at today's prices.
Seems like the equity capture would be 2 or 3 times what
it is today so why not hold. Not only that but I like
chunking in the cash flow more than the one time hit.
St. Louis, MO · Member since 2012 · 7 posts · 0 votes
14y
I haven't started in real estate yet but I think I will go with the buy and hold strategy. So I guess my opinion doesn't matter since this is referring to actual investors ha
Involved In Real Estate · Las Vegas, NV · Member since 2010 · 341 posts · 86 votes
14y
We started out flipping because that's where you can get enough money to actually buy properties for longer term holding. Once you purchase a home for 150K, that means all your eggs are in one basket. If it takes 3-4 months to flip making 20K-30K each time, in about a year, you will have enough for 2 properties and 4 properties by year 3. However, there is a point of diminishing returns, where its just possible to flip 20 properties a month.
At that point it would make sense to hold onto properties and just flip a couple a month.
Long story short, flipping is a job, holding is investing.
Real Estate Investor · Virginia, DC &, MD · Member since 2008 · 261 posts · 71 votes
14y
First couple were buy and hold. Now only do flips. I will suffer the higher tax rate and make $40k per flip. That's about 120% annualized return. For me, it beats the $700 per month game of profit from rentals. Now I only have to worry about appraisals and not which tenant will thrash one of my houses next.
As a side note, I have been looking for a apartment building if the price is right.
Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
14y
I do both.
The flipping is what gives me the cash to be able to buy more buy-and-hold properties. I spend very little of my flipping income on living expenses. Everything else gets reinvested into my buy-and-hold side of my business.
In my opinion, you'll see most investors do a combination of the two since they compliment each other...
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
14y
i do both...flipping has enabled me to make way more than i should be at my age...i used that money to purchase rentals and apartment buildings..ironically, i've sold many rentals in the last year, hoping to use that equity to flip and build new in this market...i still hold a few rentals, and will look to pick up more here and there as the opportunities present themselves
Investor · El Paso/Socorro, TX · Member since 2012 · 365 posts · 75 votes
14y
Buy and hold for me. I don't have the contacts with decent contractors to make a flip possible. Last two contractors I had got fired for screwing up simple jobs. It takes longer to do it myself but I know what I have when I'm done.
Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
14y
I buy, fix and hold for rental income. Considered flipping but to make sense I would need to be in a market that supports it and I would need to purchase more expensive properties . Currently buy properties and fix them for under 25K that rent for 626 month. IMO It would be hard to make a fair return on a flip of these properties.
Investor · Union, NJ · Member since 2011 · 838 posts · 295 votes
14y
Buy and hold, my full time occupation as a Sys Admin keeps me too busy to fix and flip but I would love to team up with someone in the NJ area and try get into the fix and flip market. I have capital just don't have the time to do the leg work.
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
14y
To this point we have been rehabbing, but we are looking to expand into the rental market. We would like to establish a balanced approach using both methods for a while.
Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
14y
Both. I started 20 years ago and for the first 10 years I spent most of my flip profits doing what young people do with extra money - spend it, so I flipped 95% and held 5%. For the second 10 years the market in CA didn't make any sense to buy/hold so I kept flipping here, but buying apartments to hold in other states. Started to hold SFR about a year ago when the price to rent ratio got really out of whack. Still flip if the cap rate doesn't support holding, and hold if it does.