Should a no experience investor start with fix and flip or fix and rent?

Question

I am 26 years old, an extremely beginner into the real estate industry. I am looking to invest, should i consider multi family units ( duplexes) or single home where I would fix and flip?

I am in Charlotte, NC

Joseph Tadres · Answer

As a beginner, I'd recommend starting with a fix-and-rent strategy on a duplex. This offers steady cash flow from multiple tenants, reducing risk compared to flipping, which can be unpredictable.

Ezekiel Trevino · Answer

If you want passive income, invest in multi-family units. If know a builder who can quote you a good price on a fix and flip property, and make a profit after selling the property, then do fix and flip. You could also fix up a single family home and rent it out instead of selling it.

Jose Clavijo · Answer

I’d absolutely go the house hacking route. Personally, I’d look for a duplex, ideally one with some value add potential. Even if just one unit needs cosmetic upgrades, that’s a great way to boost equity and rent quickly. Once it’s rehabbed and rented to a solid tenant, you can rinse and repeat.

Cash flow should be the priority, so I’d focus on areas around Charlotte that are just outside city limits, you’ll typically find better price points. Just make sure you run your numbers carefully, factor in maintenance and vacancy, and move forward once the deal makes sense.

Caleb Brown · Answer

I would do a house hack first. You can look at a 2-4 unit. Gets you in the door and the risk is way lower compared to jumping into a rehab. Once you buy a property then you can research and network to get a better base for rehab properties

Aaron Zimmerman · Answer

Seconded on the house hack. You can do fix and flip but you basically need to buy it right, manage it right, and sell at the right time and for the right price. Plus it's tax inefficient, so on a $25k profit, you probably end up with $15-18k. House hacking builds equity and can reduce your house expense.

Joyce Ann Magallanes · Answer

Hello Anaujah,

What’s your exit strategy? Your approach often depends on the current market and the down payment you have available. Once the fix & flip is complete, are you looking to refinance and keep the property, or do you plan to sell it? Also, in terms of your exit, do you find that single-family or multifamily assets perform better? Let me know, and I’d be happy to assist!

Hemang Bhatt · Answer

I'm in Charlotte as well. I think you should focuse your efforts on house hacking but it's really difficult in Charlotte to do as there's not many duplexes available for purchase where the numbers make sense.

Id suggest going the route of buying a home with cosmetic fixes required, make those and then consider renting it out and reappraising it and cash out -> repeat

Alternantively on the lines of house hacking considering going the pad split route, depends on if you're single or married or what your end goal is.

Andrew Garcia · Answer

I'm in a similar boat as you but I intend to close on a multi family and fix and rent. Let's connect. I'd love to chat more 🤙

Bryce Jamison · Answer

I agree with @Jose Clavijo on the first paragraph, but I'll respectfully disagree with the second.

Cash flow is NOT my priority. Long term appreciation is. Sure, $200 bucks a month is cool, but I'd rather a property that essentially breaks even on rent and all expenses and appreciates 10,20, or 30K annually. Of course in an ideal world you get both, but today's interest rates are making that more challenging.

Higher cashflow can usually be found with lower grade properties because they're cheaper and have a lower mortgage. The downside is they come with lots of headache and low appreciation upside.

Should a no experience investor start with fix and flip or fix and rent?

Should a no experience investor start with fix and flip or fix and rent?

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