All Forum Posts by: Jeb Armstrong

IMO, flipping makes sense in certain markets where there's both a good supply of distressed properties and demand for nicer properties.  Profit from flipping depends on one's ability to find deals and move a large volume of properties.

Buy and hold renting is less exciting.  You should be able to determine a rate of return for your area based on comps and rental rates.  The downside of renting is managing tenant issues and slow cycle time between purchases (boredom).  One way to manage risk of really bad things (eviction, furnace, foundation, etc) with buy and hold is to have a larger number of properties.  That is, you're bound to have unexpected repairs and vacancies.  It is better to have several less expensive properties bringing in income while one is out of commission than to risk having a single expensive property out of commission.

One can certainly go broke with a bad rental purchase but I think flipping caries a greater risk.  During the housing crash, flippers were the ones stuck with inventory they couldn't sell and debts they couldn't pay.  Landlords in a reasonable market (not Detroit) can weather a storm like that of a few years as long as their original numbers made sense.

Hey Jeb, most of my business consists of flipping, however I do have a few rental properties. I've found that as a flipper, it makes sense to be open to both. I use my rental income as a source of monthly stable income, and then flipping as a bonus income. In doing so, I feel it helps to take the pressure off myself to trade and put myself into a risky deal simply because I need the income from flipping. 

From past experience, you'll also invariably end up with one or two houses that you'd made a mistake on while flipping and end up having to hold onto as a long term rental. 

So personally, if you are looking into this, I would be open to both. Personally, I would start off with flipping if you know what you're doing, build up capital and use it to buy rentals. 

@Jeb Armstrong 

Dont die on us! I'm pretty sure I can speak for most people here. We wanna follow along with your journey, keep us updated!

Hard? Yes, time intensive yes, difficult, yes, worth it? yes. Does he flip houses already and trying to bring you into the buisness? If he is and its something you want sounds like he's trying to get you a real eductaion without the student debt. But thats just arm chair thoughts. What are your objectives if you take this chance?

If you can demonstrate market knowledge, confidence and point to any successes you have, you will overcome most people's initial concerns.  The great thing about real estate is that the longer you are in it, the more referrals and people you will know making getting future business easier.  Starting at 18 years old, you will be a top broker in your twenties if you keep at it.

Good luck!

If you can demonstrate market knowledge, confidence and point to any successes you have, you will overcome most people's initial concerns.  The great thing about real estate is that the longer you are in it, the more referrals and people you will know making getting future business easier.  Starting at 18 years old, you will be a top broker in your twenties if you keep at it.

Good luck!