All Forum Posts by: Michael Duran

We really need more details to provide you a good answer...

Do you work a full time job?  Do you have the time to flip houses?  How much do you have to invest?

Without that, I would say that rentals will provide you ongoing cash flow, and let you eventually quit your day job.  I quit my corporate bank job when I had enough cash flow to replace my income, plus health insurance, plus a cushion.  My wife quit hers two months later and we are now 18 months further down the road and loving it.  We bought 12 rentals in  year 1, 9 in year 2, and 3 so far this year.  

Flipping houses gives you quick hits of money, but you have to keep doing it to stay afloat and there are a lot more moving parts with flips... did you miss something, how long will it take to renovate, will you get the price you need.  We have flipped one property as well... netted about $50k.  You might say, that will work... but keep in mind there are pretty serious taxes that go along with flipping... if held for under a year the income is taxed as regular income... so 20-24% of your profit can go to Uncle Sam.  

Our game is rentals for the consistent cash flow and simplicity of the model.  We manage 40 units ourselves with ease!  We're our own boss, work (mostly) when we want, get up when we want, go on vacation when we want, etc.