Each strategy has its own set of benefits and drawbacks, as well as potential returns and risks.Buying to Flip for Quick ProfitBenefits:Quick Returns: Flipping properties can potentially yield quick profits, especially in a hot real estate market.Minimal Holding Costs: Since the goal is to sell the property quickly, holding costs such as property taxes and maintenance expenses are minimized.Creative Freedom: Flippers have the freedom to renovate and design the property to maximize its resale value.Drawbacks:Market Volatility: Flipping is highly dependent on market conditions, and a downturn in the market can lead to reduced profits or even losses.Capital Intensive: Flipping often requires significant upfront capital for purchasing, renovating, and holding the property until it sells.Income Tax Implications: Profits from flipping are typically taxed as short-term capital gains, which may result in higher tax liabilities.Buying for Rental Income and Long-Term InvestmentAdvantages:Steady Cash Flow: Rental properties can provide a consistent stream of income through monthly rent payments.Appreciation Potential: Over time, rental properties have the potential to appreciate in value, providing long-term wealth accumulation.Tax Benefits: Rental property owners may benefit from tax deductions on mortgage interest, property taxes, and depreciation.Challenges:Tenant Management: Dealing with tenants, maintenance, and property management can be time-consuming and requires effective management skills.Market Risks: Rental income may be affected by market fluctuations and changes in rental demand.Liquidity: Unlike flipping, rental properties may not offer immediate liquidity, as selling a property can take time and incur transaction costs.Comparing Potential Returns and RisksBoth strategies offer the potential for attractive returns, but they come with different levels of risk.

The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.

In a husband and wife scenario the draw back to two member LLCs is that they would need to file separate tax returns and this could get costly once you have several properties.

Most people seem to overestimate the protection and underestimate the drawbacks.

Socialism does have its benefits as does dictatorship (if you dont wnat to think for yourself) but the drawbacks with those systems far outweigh the benefits.

Actually, hitting those up in nursing homes has draw backs, like compentancy, you need to volunteer at the library, the zoo, the humane society, the red cross or the literacy council.

@Rusty Thompson return is 2.3%, see that was my logic, if it's a 5 year loan and the interest would be paying yourself back, then i do not see what would be the drawback?

As you point out, there are also drawbacks and obligations.

The homeowners insurance is very high because its in a hurricane zone, thats the only draw back.

The drawback of buying HUD homes is they no longer pay any closing costs for investors and of course we (investors) pay all realtor commissions.