Rental Property Investor · Jackson, MS · Member since 2018 · 7 posts · 10 votes
I'm mid-60s and was "retired" two years before I'd planned to. I am getting into real estate investing to generate income for my wife and me. I've bought two single family houses (Jackson, MS area) already and am rehabbing them now. At my age and need to generate income for the future, is it wiser to buy and hold or BRRRR, or just flip and resell? Please share your wisdom out there to help me.
Developer · Member since 2020 · 4k+ posts · 4k+ votes
5y
Well this is the greatest thing that ever happened to you. Congratulations. Don't need the answers to the below, just letting you know my thought process.
1. What investment mode are you in? Wealth Conservation or Wealth Generation? Above you mention income for the future.
2. How much at risk wealth do you have to invest? Should have bought retirement home policy. Also long-term health care policy. Do you have liquid assets set aside for your next 5 years living expenses. Etc. Whatever is leftover, you can invest.
3. To evaluate which method, pick an investment time window. If you 65 and plan to be out of real estate investments by 75, then your working with a 10 year window. Take your buy and hold profit estimate with a 10 year NPV on you potential profit; versus Flip/Resell profit. Which is better?
4. One of your largest investments is your home. I would look at how to make those funds into profit generating tools.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
5y
Buy and hold and BRRRR are fairly similar. BRRRR is just to get a good enough deal that you can refinance it and pull out all the money you put in. Insofar as that means getting a really good deal, I would go that route. In your 60's, I think the big thing I would focus on is a conservative investment strategy. Buy in good areas, with equity (probably both in terms of putting some down and getting a good deal, of course) and look for solid cash flow. No need to go for broke right now. Overall, I still like buy and hold though.