Flipping Versus Renting Real Estate

Dated: May 1 2020

Views: 96

When you make an investment in real estate, it’s important to consider your options for turning a profit. It might be best to rent out the property to cover your mortgage and build equity. Or, you could fix up the home and flip it so that you can sell it quickly for a larger amount than you invested. Both are appealing options, so here are some important factors to consider before making your decision.

When to Flip

If you are thinking about flipping a house, you will need to have enough capital to invest in the property, so you can make the required improvements and repairs. Flipping a house can be tricky, so you also will want to have enough experience to know what you are doing. Do your research so you’ll know what renovations will have the most impact on the value of your [city] real estate. 

You will also need to know if the market in the area will support your new price point. Buying and flipping a house in a depressed housing market will not be easy. You will want to do the flip in a very buyer-friendly community for your best chances of a high return. 

When to Rent

Flipping a house gives you quick cash, but renting it out instead gives you a monthly cash flow and a larger long-term profit as the property appreciates over time. If you don’t mind being a landlord and you have the time to screen for reliable renters, then renting out the property might be a better option for you.  

This option also means that you will have the home later on in case you want to live in it. Of course, don’t forget to factor in additional upkeep costs, such as repairs, utilities and property taxes. 

Whether you rent out or flip your investment property will depend on whether you are interested in a long-term investment or a short-term project. If you’re looking to purchase real estate, please call me at 714-942-2207 or email me at abner@hbyacorp.com for more information.

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Abner Flores

Whether you are purchasing your first home, upgrading to your next, or preparing to sell, my goal is simple: to provide expert guidance, clear communication, and a smooth, stress free experience from ....

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