Flip houses or buy a rental property? Here’s what you should keep in mind when deciding.

 

Selling your home? Get a home valuation.

Buying a home? Search the local MLS.

 

There are two primary ways to make money in real estate: renting out property and house flipping. Which one should you put your money into?

 

House flipping is a short-term investment, but most flippers only finish one to two deals each year—it’s definitely not as rapid as the HGTV shows make it seem. And there’s no guarantee that house flipping will net any profits. You’ll be paying about 15% to 23% of your profits in taxes. There’s money to be made, but not if you’re only doing a couple flips a year. 

 

To make a good income, you really need to commit to it fully. You put together a business plan, lead generation strategy, and hire agents who will find properties for you to flip. And once you have the cash to purchase properties, things can really begin to pick up in the house-flipping game.

 

"The best decision is really the one that works for your situation and your goals."

 

Buying and renting out a property is a long-term investment that builds your equity over time. Your renters are paying off your mortgage, thus paying off your investment. You can then sell it down the line for a big profit or keep it and continue earning a passive income. 

 

Most real estate gurus say it’s best to go down the long-term route, but the best decision is really the one that makes sense for your situation and your goals. There’s definitely money to be made in flipping houses if you can afford the time to do so, but rental properties are always a safe and passive investment.

 

If you have any questions about investing or would like to learn more, feel free to reach out to us so we can figure out how these options can work for you. We look forward to hearing from you soon.