Flipping Houses vs Owning Rental Properties
It depends what your goals are, and what you envision your lifestyle to look like. House flipping entails finding the right deal, fixing it, and then selling it to make a profit. Usually you’re looking for homes that are deeply discounted, and in disrepair. Flipping can be a great way to make money, and that’s why it’s alluring. Many flippers can make anywhere from $40,000 to $70,000 on one deal alone. However, it’s important to remember that flipping is transactional.
It’s like having a paycheck-based job. You have to work constantly, and always be on the hunt for the next project. Flippers have to hustle! A typical project takes about six months to complete, and then once you profit off the sale, you’ll need to move onto another to make more money.
If you want real estate to be your new full-time career, then maybe flipping is for you. For most new investors, passive income is the way to go. Buy and hold investing is a great way to sit back and collect rent checks, without neglecting your family, job, or other commitments. If you're thinking that being a landlord doesn't sound very passive, read this post on hiring a property management team.
If you put the right safeguards in place, renting out your properties can be passive and scalable. Our properties earn an average monthly rent of $700. Each property brings you cash flow every single month, the tax benefits are tremendous, and it’s a great way to build your net worth. No contest, owning rental properties is the winner in my book.