What is easier for you - flipping or landlording?

18 Replies

I've never done a flip but intend to one day. I would think landlording is more difficult due to a lot more things involved (neigbors, tenants, etc.

Well it really depends on you. Flipping is more to buy/sell a property in a short time frame kind of like stock trading. Where as being a landlord you build cash flow but deal with day to day issues for a property.

Why limit yourself to just one? I would suggest doing both. Being a landlord can be tough, but you get monthly income and can always hire a property management company to handle the day to day issues. Plus, you can always sell the property in the future. Flipping is also great because you can make a (sometimes large) profit in a short amount of time.

Do both. Flipping can at times seem easier (and a lot of fun) but landlording and having rentals is where the real wealth (passive) is at.

I flip to fund my rentals.

Great topic. I have always been rehab/flip but get preached at all the time from my investor friends that "the true way to build wealth is to buy and hold" , I just always prefer the one big paycheck instead of the smaller monthly that can come with the headaches as well.

Reading above discussions, I guess I belong to neither of the two categories. Firstly, I am not flipping as I don't have an exit plan for each purchase. Secondly, I invest in resort condos, which are managed by the hotels. I am completely hand off. I don't deal with tenants directly (in fact, they are called the guests in hotel business). I feel I am just an investor rather than a landlord. Besides, my cash flow is very low, although the revenue exceeds 20%. Thus my investment goal is to have appreciation. The best I closed this year (in April) has about 40% appreciation now.

So to me real estate is just like tradable securities or commodities.

I enjoy landlording, I have a pretty good relationship with my tenants.

Different strokes for different folks. While one big pay day excites some people, getting a check every month excites others. I have no headaches from my rentals. Shoot, I haven't ever seen 3/4's of my rentals or even been in the city where they are located.

If you like to get your hands dirty, be involved with permits, contractors, inspectors, and such, then flipping might be up your alley. But if you like to go play golf, take cruise vacations, play with the kids and/or grand kids, maybe the long term rentals are more your speed.

You need to figure out what works for you. There is no one-size-fits-all approach.

I'm currently deadlocked on cashflow (landlording) but flipping has been good to me. Actually applying both has been a part of my business model for over a decade. I think lifestyles and personalities are essential when deciding which is best on a individual basis. Although Both would be a GoalBuster!

The rehab on my rental was WAY more work than managing the rental. I added value (profit if I were to resell - not total value added since materials would add more)to the property equivelant to about 2-3 years of rent profits in 2 short months of doing the rehab. So, dollar for dollar, it may be a tossup.

For me, my wife and I have two little kids and both have day jobs. Buying and selling real estate seems seems pretty intense and not so passive. So we are currently buying and renting out. I suppose a couple of bad tenants / major fixes could quickly change my view of just how 'passive' being a landlord is. For now, our strategy is to buy, rehab, and then rent. So if we do a decent job of rehabbing, this should limit--at least in the short term--typical landlord 'fix-it' issues.

Originally posted by Mike M:

If you like to get your hands dirty, be involved with permits, contractors, inspectors, and such, then flipping might be up your alley. But if you like to go play golf, take cruise vacations, play with the kids and/or grand kids, maybe the long term rentals are more your speed.

You are comparing a "hands on" rehab/flipper to a "hands off landlord", I don' think that is a very reasonable comparison.

Using your example, there are plenty of landlords that self manage and do the labor themselves to save money...fixing toilets, handling ugly evictions etc...

Or you could be a "hands off rehab/flipper"...have an inspector check it out, have your contractor get it fixes up...buy fix and sell with never visiting the property...just making a couple phone calls and writing a few checks.

My point is that either can be ran in an active or passive way.

The best is weigh the situation and choose the most profitable option at that particular point in time.If renting will bring you good monthly income then take that route.If you have found a buyer with a great offer, then flip.

I agree with @Ryan Moses , the option that is the most profitable is the better decision. I would personally lean towards the monthly income especially if the property I owned has favorable financing options with a good tenant.

Tenants drove me crazy. Now I only flip.

"Difficult" is going to depend on a lot of things -- your goals, your expertise, your experience, your support team, your approach, etc.

For some (like me), landlording is more difficult than flipping. In my situation, it's just based on the fact that I haven't done it very much, and those who have done it for years have much more experience and know what works and what doesn't work. When I deal with tenants, I'm just guessing the best way to handle situations. In 10 years, I'll probably have enough experience where I don't have to guess anymore.

When rehabbing, I have enough experience where I don't have to guess anymore (though I've done plenty of guessing over the years). But, new rehabbers do a lot of guesswork, and they probably find it very difficult (like I used to find it).

Your experience and expertise will dictate which is more difficult for you...

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