Shall you be a a landlord, a flipper, or both?

Shall you be a landlord, a flipper, or both?

Buying a rental property or a flip are very different purchases. The main reason to buy a flip is to achieve a quick profit which is feasible in a hot market where days on market are low and you can ‘turn’ your money quickly to the next deal and grow that way.

Flipping is labor intensive and you are on a time clock. The faster you sell, the greater your margin.

Landlording on the other end, is a long term endeavor. You need to let the magic of compounding work for you for many years and you will get results from your patience with:

1)Consistent cash flow

2)Equity build up through loan paydown

3)Appreciation

4)Tax benefits/depreciation.

When you buy a flip your horizon of investment is 3 to 6 months typically, can be a little more 9-12 months if you target the high end luxury market. 

On the opposite, buying a rental requires a 3 to 5 years’ horizon minimum. The positive aspects of this long term perspective is that your investment exit(sale) will be tax free if you invest in another property.

You do not have to choose between the two, flip or rental, and you can do both: flips to supplement your current income and rentals to build long term wealth.

Based on your objectives, we can help you both building a rental portfolio or supplement your income with flips.