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Updated about 6 years ago on . Most recent reply

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235
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Joseph A.
  • New Rochelle, NY
150
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235
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Buy and Hold or Flip Advice

Joseph A.
  • New Rochelle, NY
Posted

So my contractor relative is doing some minor work on a house that was inherited by a person that is  out of state that just wants to sell it and be done with it. The bathroom and kitchen are about 20-30 years old and nothing will be done to  them before they go on the market. The real estate agent said he was going to list the property for 425,000. It is a single family house that's only 918 square feet on a 4000 square feet lot. Comps from the same zip code sell for an average of 535,000 some of which also had dated kitchens, but were about 1200-1400 square feet. However there was one property that was almost identical in square footage and lot size that sold for 560,000 in that same zip code. My relative can update the kitchen and bathroom for $12,000. This sounds like a good deal but the money I have I was going to use to buy a rental to buy and hold. I only have enough money to do one or the other and I have resources actively finding a buy and hold property for me. I've never done a flip before and didn't plan on doing one this early in my investment journey. What should I do????

Most Popular Reply

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13,385
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Joe Villeneuve
#4 All Forums Contributor
  • Plymouth, MI
19,417
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13,385
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Joe Villeneuve
#4 All Forums Contributor
  • Plymouth, MI
Replied

Flip.  

If you buy rentals at the start, you will be spending your money...meaning you will get only one use out of it.  How long will it take to get enough money to get your next rental?...and how will you get that money?

Flip

If you flip your cash, and repeat that flip (over and over), you can reuse that same money (over and over).  Spend your profits only...never spend your seed money.  Using this system, where/when do you get your next money to buy your next rental?...from yourself...and the flip profits...over and over again.

Flip

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