Flip Or Rent?

Comments(4)

• 
  mcl819026th November, 2003

  There are a lot of variables to consider in that question, vacancy rates, appreciation, number of deals that you can close.
  
  From a rehab standpoint, you are probably commiting a good amount of money to each deal, so if you can find a googd number of deals, it would probably be better to buy, fix, sell. Doing this several times a year can make very nice profits.
  
  But, if you have the resources or ability to get several deals going, and vacancy and appreciation are not issues for you, many people think that the buy and hold strategy wins out long term.

• 
  Tedjr26th November, 2003

  Buy in a buyers market and hold until it is a sellers market. Timing is everything. I was too greedy and tried to hold too long but also who knew about 9/11.
  
  Hope this helps some
  
  Ted Jr

• 
  jonesoe3026th November, 2003

  Quote:
  On 2003-11-26 07:20, hillsdd wrote:
  Is it more profitable to:
  
  (a) Buy real estate property low fix it up and rent it out?
  
  (b) Buy real estate property low fix it up and sell it?
  Buying real estate and holding it long term can be more profitable over time than buying and flipping. But one just needs to consider exactly what they are seeking from a particular deal...passive income or quick cash!! Hope this helps.
  
  
  
  <IMG SRC="images/forum/smilies/icon_rolleyes.gif">

• 
  Vern26th November, 2003

  Hello Hillsdd,
  
  The answer to your question, how deep are your pockets. If you hold onto the properties and are able to rent them out as soon as you drive the last nail. Even at the rate, you will eventually run out of capital to continue on your path.
  
  If you say, purchase at 50k and put 25k into the rehab, get the unit to appraise at 110k (leaving 35k equity), rent the unit at 950 per month. You will have a pcf of maybe 400 per month. You have 68.7% into the property. You could refi to take out say 80%, but it is going to cost you dearly.
  
  Maybe buy and fix three and sell one could work or sell and hold one. This is only way you will not run out of funding for your projects. Unless you are Mr. Deep-pockets. Good Luck