Buy & Hold Vs. Cash Flow
I am a newbie, and I wanted to know if a new investor with little cash flow should buy rental properties? Or should I use other methods such as Wholesaling to generate cash flow before I become a landlord?[ Edited by JRODD on Date 06/25/2004 ]
I know that most investors will recommend generating cash before you buy and hold.
That said, I did it the other way around.
One of the best strategies is to generate capital by flipping homes and using that money to get into multi-units.
There's nothing better than having a group of people pay your mortgage for you with a little cream on top. And management firms only cost 5-15% of total rents for building depending on the number of units, so all you have to do is sit back and check your bank account every month.
[addsig]
If you can generate good money flipping, go ahead, but you should still buy rentals to build long term wealth. In my opinion, although there are many ways to buy property with little or no cash. I suggest having a little money in the bank before investing deeply in rentals. You never know what could happen.[ Edited by Raj211 on Date 06/26/2004 ]
My strategy was to buy a few rentals (4) that generated some cashflow for me and then I have been doing a few rehabs, renting them out and then selling to investors that don't want to mess with doing the rehabs themselves. I woudl like to get into rehabbing a little bit nicer homes to retail out to owner occupants by next year though.
Joe
[addsig]