Are the consequences of financing a no money down deal and failing worse than the consequences of financing a deal with some of your own cash on the table and failing, as a first-timer?
Flip or buy and hold? What's the plan? I don't plan or even think about failing, because of my purchase strategy, but I have an emergency fund in place in errr when that time comes and by fail in my terms that means taking a loss on a property instead of a profit.
I originally thought about buy and hold, but then considered the possibility of flip for sometime to generate capital to work with. I still keep flipping in mind as an option, but I think I'll stick to the plan of buy and hold. With buy and hold, there isn't as much pressure from holding costs, there is more ease of getting low-down loans like FHA or 203k, and there is creation of equity. Plus, my Oklahoma real estate agent tells me that rentals are more feasible than flips due to the competitive market we're working with and my relative lack of experience as a first-time investor, especially as one out-of-state. I plan to avoid failure as much as possible too, but I mean things will not always go according to plan, which is why I think it's good to keep failure in mind as a possibility. "Failure" to me would mean either negative cashflow (for a rental) or taking a loss on property instead of profit (for a flip).
in my mind on the purchase end there is not much difference between a buy and hold and a flip. I want the best price I can get no matter the plan. not sure where experience makes a difference between one or the other it really makes a difference in both and really has more to do with the experience of your agent and the contractor you will be using not your personal experience.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.