First rental vs first flip

[Eric Winters]

Sooo I’m bouncing back and forth between a rental (sfh or duplex) and doing a straight up flip. I’ve been working in the flipping Buisness but for someone else’s company for 2 years now. I am pre approved for a 100k loan and I’m worried about getting my first rental and being stuck not being able to get approved for another mortgage for a year. I want to keep moving foreword building my real estate empire. My goal is to accommodate rentals but the money in flipping may really help me starting out. Any feedback would be awesome. Let me know what you would do.

[John Warren]

@Eric Winters I personally lean towards starting with rentals. I first purchased my four unit property in Lyons, IL three years ago. It has been a cash cow and easy to manage. Since then I have purchased 29 rental units with my partner in the Chicago suburbs. Rentals have been very profitable, and very low risk honestly. 

I am currently doing my first flip here in Berwyn, which is a great market for flipping. My partner and I bought the property in cash for $140,000 and have put well over $100,000 in renovations into it. We will definitely make money, but that is a lot of risk in my opinion! You have to be properly capitalized to pull of that type of move.