Real Estate Investing: Should You Buy Rentals Or Flip Properties For Profit?

Most people find real estate investing enticing, and for good reason. It can be extremely profitable, and is also an exciting and creative way to strengthen your financial portfolio. When it comes to making a profit from real estate investing, the question is: should you buy rentals, or flip properties? Those are both two very different things, and one may be a better option for you, depending on your situation and your goals. I learned firsthand the ins and outs of both buying rentals, and flipping properties, and can tell you they both come with their risk, and their reward.

My first time buying a rental property turned into a real learning experience. I was definitely over-confident at first, and obviously lacked experience, like all beginners do. The property needed to be fixed up a little bit, but in the end, it turned into a positive experience.

Buying a rental property is a great option if you’re able to safely afford it. That’s because buying a rental property usually takes a decent amount of cash on hand. Even if you’re financing the property, you’re going to need to have a portion of that money ready to go. Aside from the property itself, you definitely also want to have a financial cushion, for unforeseen circumstances. Some things to be prepared for: extensive repairs, or months of vacancy. No one wants to end up in those situations, but if you’re ready to weather them, you’ll be in much better shape to succeed.

If you’re able to save up for the property, and also have a financial cushion, buying a rental property may be the best choice for you. If you have tenants stick with you for the long term, you’ll have a reliable source of passive income.

Flipping properties is the process of fixing-up homes, and selling them. After I started working with rental properties, I began dabbling in house flipping.

One of my key takeaways from my first flip was to be really mindful of the repairs that need to be made, when you select a property to flip. It may be enticing to buy a home that needs a lot of work, which is for sale for a low cost, and seems like a great bargain. But it could also lead you to endless repairs, which drain your budget fast. Also, if you’re not doing the work yourself, select the contractors you’re working with carefully. You want to make sure they can do a proper job, at an efficient cost.

When you’re flipping properties, you also need to have the money ready to buy the property, and then the money to fix it up. But once you get rolling with property flipping, you can have a steady stream of income.

Flipping properties can be exciting, fun, and creative. It can be really rewarding to see what you can do with a space. If you plan on buying a property to flip, I recently shared some tips to help you save money.

I truly love helping others navigate the world of real estate investing. If you’re looking for more tips or advice, connect with me on Instagram, Facebook, and Twitter.