First Time Investor Should I Buy and Rent or Flip?

[Fitzgerald Valdez]

First off this site has been awesome for getting information thanks BP!

I'm new to Real Estate Investing. I've been going back and forth on what I want to do. Early in my career, before I got into IT, I worked for a property management company. Part of me wants to buy a small duplex or something with few units that's easily manageable since I have prior experience. The other part of me wants to get into flipping homes. I purchased my first home in 2012 and have been slowly remolding it with the plan at some point I would sell it so that I can raise money to do another project, or rent it and purchase something else. The market seems to be picking up here in the Dallas area . What advice do you have on what is the best type of investment to start with SFH vs MF? How did you get started and what advice do you have for beginners?

[Jon Holdman]

While both involve real estate these are two completely different businesses.

Buy and hold is investing.  You put in your money and you earn a return.  If you buy good properties, double digit returns on your cash are possible.  And the returns continue as long as you own the property.

Fix and flip is a business.  You buy raw materials (junky houses, building materials), put in labor and produce a salable product.  When you sell it, you get a paycheck.  A big one if you do it right.   Or you can lose money if you don't.  You only get the single paycheck for each deal.  So, if you want an ongoing income stream you have to keep turning the crank.