All Forum Posts by: Cade Anderson

Hey Cade,

First off, loved starting with a y'all. 

As for the decision, I have a few clients struggling with this especially because the cash flow issues in TX right now. Combine the rates with the property taxes and it makes it tough to cash flow in a lot of areas in TX.

A few of those folks are truly flipping for the purpose of keeping as liquid as possible right now. If you can find a way to cash flow that is great, but if you maintain liquidity, then it will make it easier to purchase and be aggressive when times are good. 

 Get good deals so you're making about 10 - 15% net per year, HOLD THEM, if you have got a good deal ( not easy in this market) I have flipped about 500 , yes 500 in my market. Biggest mistake in my life, not keeping 50 or so more, cost me millions. , Wealth is built, not flipped :) 

Good luck 

Flipping is a business, it's not an investment. So you must be an expert on real estate first before you LTR.
LTR is more like semi-active real estate investment.

There's always battle between reward/risk scenario which one is better, flipping or LTR, it really depends on the economic condition, your skillset, the future trajectory of interest rate and the local house market condition itself. 

But if you want to be advanced and grow in real estate, flipping is the way to go. It's more like master degree and high school. There're more challenges and risk with Flipping although it offers some lesser risk in some part as well. Both profession requires you to have strong discipline and good calculation in business.

Hey Cade!

When starting out, I would suggest house hacking to familiarize yourself and then turn it into a LTR if that is what you choose 

Hey @Cade Anderson

You're asking the right questions, but they are BIG questions and deserve some solid thinking time. 

Zoom out for a bit and really think about your priorities and current skill sets. Identify your strong areas and the areas you could improve on. Once you have a solid foundation all around you'll be in a better position to make an informed decision on where to start. 

That being said; long term buy and hold is arguably the greatest way to store and build wealth...but it's not necessarily the best thing for cash flow, at least in the beginning. If generating cash is a concern then you may want to focus on flips or even wholesaling to generate revenue and keep things cushy while you build your portfolio of rentals. 

My two cents; build a stable revenue base (in REI, your W2 or whatever) and build from a place of financial strength to absorb any of the inevitable BS that will come your way with a rental portfolio.

Hope this helps a bit even though it isn't super "tactical" advice...you can find plenty of that online and in books. It's the big picture thinking that's the real game changer I wish I had someone helping me with at your age. 

Cheers,
Josh