From personal experience, fix and flip or rental properties ?

Question

Hello Everyone,

My name is Bijou Diaou, and I wanted to hear from personal experience which investment strategy would you prefer fix and flip or rental properties? If you can include your reasoning, it will be highly appreciated?

John Warren · Answer

Account Closed for me fix and flips were just a shiny object that distracted me from rental properties. I did one flip locally here in Berwyn in 2017, and I made almost no money on it. I own 58 apartment units today in the area, and I cringe when I think about how many more units I could own if I hadn't wasted all that time on the flip!

Steve Vaughan · Answer

It all depends heavily on the house and neighborhood.  Too nice to pencil as a rental?  Not nice enough to be a good retail sale?

Fit your strategy to the asset.  Not everything is a nail just because your tool is a hammer. Have more than one  tool.

Tj Hines · Answer

Account Closed fixing and flipping properties is the most riskiest strategy out there know to man. No sustainability and way to many variables and moving pieces that can cause a ton of head trauma. Speaking from personal experience of having flipped over 80+ in the past 4 years or so. Now all we focus on is long term value add multifamily. More sustainability and predictability. Buying and holding will allow you to reach your goals much quicker than SFR flips will

Bjorn Ahlblad · Answer

Account Closed I only do rentals as I have no contractor skills. The rentals are working well for me.

Greg Dickerson · Answer

For SFR I prefer fix and flip to generate chunks of cash to invest in larger assets. Rentals take too long to scale and you need a bunch to generate real cashflow.

Ugochukwu Opara · Answer

This one depends on your resources but I recommend everyone get into rental properties.

Buy something that is completely run down and do the renovations.

Get it rented then cash-out refinance to get your funds back and pay back any more you borrowed (ie Hard Money). Then you rinse and repeat. I do this with small multi-family buildings 2-4 units, and it works well. However, I am picky with my selections because my goal for each building is to make $800+/m net in rental income.

From personal experience, fix and flip or rental properties ?

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