$30k flip or $3k year brrrr cash flow ?

[Nate Sanow]

Just for fun and discussion. Something I’ve given a lot of thought to lately is the simplicity behind WHY we invest. To grow capital. I’m just curious if anyone has given this thought from an analytical standpoint. Let’s say your net cash flow per year is $3,000. Let’s say that same house is flip-able, and had you sold it you could net $30k. That’s 10 years of cash flow. I know the argument is passive vs active but let’s assume both can happen with the same crews and project management (because they can, and often do). The question now is, do you take the flip or the brrrr? And why? 

[Alexander Szikla]

I am a big believer in rentals over flipping. More tax efficient and a more long-term strategy towards wealth creation. 

But it really is a question of alternatives and how you can redeploy capital most effectively. 

I once heard a saying in Arabic somewhere along the lines of "If you have a cow, you can have steak once or you can have milk for the rest of your life"