Starting off Flipping or Renting?

Question

When I am of age (not 18 yet), would it be smarter to start off by flipping houses, or renting? I would appreciate the short term acquisition of wealth I obtain via flipping, but I also have my youth to my advantage, which also means I have time on my side (better for renting). What are any tips you may have?

Aaron K. · Answer

I'd start with renting, it is harder to screw up than flipping especially with no experience and if you do, time can help you recover.  Whereas with a flip if you screw it up time is the enemy due to holding costs.  You also have options to get into renting with less money down than flipping.

Account Closed · Answer

@Hunter Wiernasz

Starting with a flip is a great way to go broke. Why? Because you’ll likely pay too much to buy. Renovate the dumb way. Pay to much for the dumb renovation. Then price it way too high for market because you screwed up your initial arv estimate. Then sit on it for 4 months watching your bank account turn red. Then get motivated to sell and drop the price. Then get insulted when someone offers you actual market value keeping in mind they have to fix the dumb renovation to actually live in it/ resell it. Then a month or two later you’ll sell it at a substantial loss and hang your head in shame for a while.

Remember all the things you screwed up with your first girlfriend / boyfriend? Those were free (aside from the therapy in 20 years). Real estate mistakes aren’t free.

Jim Pellerin · Answer

@Hunter Wiernasz Your short term goals should be to make as much money as possible and to learn as much as you can while doing it. There are several ways to do this with and without money. You can use this money to invest in long term growth properties such as rentals.

Starting off Flipping or Renting?

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