Hi to all,
I need some tips for my next investment peeps. I'm currently selling a rental I have and walking out with about 100k in clean profit (after commissions/taxes/etc)
What's my next move?
1. Move into flips at this time in LA with partners or HML? (Or surrounding areas)
2. Buy in cheaper area (such as Bakersfield, CA), financed, and rent out for some minimal cash flow on rents?
Let me hear some opinions and what you did or would do in my situation?
Some factors to consider: I'm 25, work a full time job, salary is just above 100k. So this would just be money on the side that I don't need to count on or won't really associate much risk to. I've researched markets and how it's moved the past couple of years owning my rental. A second opinion is always good though
I think it depends on how passive you want to be. Flipping is a job. Collecting rent is fairly passive. I prefer to buy & hold. Sure, you can make $30k on a flip. With buy and hold, you don't do much work, and you can also make $30k... it's just going to take a few years. But then you'll make another $30k over the next few years. And then another $30k, without doing much of anything!
Do both! Put some marketing money aside for a mailing campaign/internet marketing and start finding deals. We use our flip money to pick up rentals. You will reach your goals faster if you do both. This is an expensive business and like me you have a full time job so we don’t fully rely on cash flow at the moment. Use the flip money to pick up rentals.
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