BiggerPockets

I'd take Option 2 at my current age and hire someone to oversee the projects.

Option two rolling the profits into rental properties.

I will take option 1 all day long. You need stamina in real estate to do options 2 and 3. I own quite a few rentals thats allow me to have more freedom in real estate. When my buyers are tapped out, I am able to still pay my bills and take control over other wholesale deals that I could not do waiting on someone else. So for me its option 1.

I'm going for a mixture of 1&2. .... Being as I'm a realtor I'm basically doing option 3 also...

My Goal..... Flip 6 and pay cash for 6 rentals. Sell 5-10Million in listings.

I really want mail box money... It's pretty much my goal in life.

Brokering, and flipping involves more uncertainty than I am comfortable with.

I would take option 2, larger profit, and do like Bryan said...hire a project manager to deal with the day to day.

@Justin S. and Nemi:

Not sure how would Option 1 would be more profitable in the long run. Option 2 is $300K net profit,every year. Option 1 is $72K gross, every year. Even if Option 1 is profit, still would catch up.

@Justin S. and Nemi:

Not sure how would Option 1 would be more profitable in the long run. Option 2 is $300K net profit,every year. Option 1 is $72K gross, every year. Even if Option 1 is profit, still would catch up.

I read it as you get 5 new rentals every year. So year 1 is 72K, year 2 is 144,000, year 3 is $216,000, etc. Perhaps I'm reading it wrong though.

Absolutely option 1 for me.

72K gross rents from free and clear properties in year one, then an additional 72K gross rent from additional free and clear properties every year after that.

After 5 years you'd be at 360K gross rents, 10 years 720K gross rents, 20 years 1.44M gross rents, all with zero debt, yeah I'll take that.

Option 1 means you buy 5 properties a year from 30-50k each cash. Then you rent them out and make 1,200/mo gross per year.

OK...this is good. I can see it that way too. I didn't think of it from that perspective.

But Option 1 still only adds 72K to your base. If you use that theory with Option 2 you add 300K to your base. In 5 yrs you would still make 300K for that year, but you would have 1.5M in the bank. After 10yrs, 3M in the bank... 20 yrs 6M. With Option 1 you only have 1.44M in the bank after 20yrs.

No debt because you pay off financing on the flip, no properties to maintain. Just cash. lol!!

Option 1 - least amount of work

The resources needed to find, fix, and sell are far more than just collecting checks. :)