How have you chosen if you want to do a flip or rental? Do you typically decide before starting the project or after the house has been rehabbed? And is the type of rehabbing different depending on if it is a rental or a flip? My initial goal was to rehab and rent out, but I can see the allure of collecting the profit upon the sale. What are your thoughts?

I owned 20+ rentals before I even considered flipping or selling a single property.  I'm wired for passive income.  Once I had a balance in my income I started flipping more.  Even now any extra cash I have I need it tied up into rentals.  There like some rental demon in me telling me to park cash in rentals.  

On your question I would only hold the property if the cash flow supports the expenses of the property.  If your gambling on appreciation then I would have other sources of income.

Today right this moment flipping and a pile of cash is cool.  What's cooler is being older chatting at a cocktail party about all the dam rentals you still own....

Frank

Frank is correct

If you look at a deal decide on whether you want to fix and flip or buy and hold before hand.   What type of investing does your heart desire.   In my experience the 1 that takes work is the fix and flip.   Buying and holding does take work, but its income month after month.  Expecially if you have good tenants!   a dream :)

Thanks @Gerald Harris  and @Frank Romine  . So it seems that both of you are fans of buy and hold. Do you prefer to buy rentals that are pretty close to ready to go or do you prefer rehabbing a cheaper home?

@Peter Smith    I think it depends on your personality type. I'm focused on the buy & hold aspects. I'd rather deal with tenants all day than with contractors all day. Also, I strategically plan for long term. Meaning, if I were to flip, I'd want to do it in an area that is hot right now. As for my buy & hold, I am looking for an area that looks to turn around in the next 5-10 years. Just as if you were investing in stocks... would you be a guy who puts his money in and keeps an eye on the market, or would you want the thrill of the day trading? Neither answer is wrong, it is just how your personality aligns with the strategy.

Account Closed If you have the capital, buying and rehabbing will create the most value and equity.  Scary things pay the most.  You can find deals putting the traditional 20% down but the cash on cash return probably won't be as good.  I did recently purchase a couple seller financed deals that had +25% cash on cash return.  I turned a lot of stones over to find them.