Rentals vs flipping

[Chris Marshall]

So I have $100,000 to invest of my own money. I have done no real estate investing yet. My real estate agent friend recommends me going into rentals and my accountant (and mentor who owned three rentals and just sold all three) recommends I start by flipping. My end goal is I want to rule the freaking world if I can. It may take a while but that's fine. I want to end up owning enough rentals and commercial building to live off of so I can start working on my other company full time and not having to work for someone else. What path has the best chance of getting me to the path fastest? Thank you.

[Joe Villeneuve]

Originally posted by @Chris Marshall:

The reason he suggests flipping is to get the profit from a couple of flips and then maybe go into rentals with a larger sum of money.

 Listen to your Mentor.  The reason you flip first is it's a faster way to building cash on a continuous basis that you will use to buy holds.  Just remember, never use your seed money to buy the rentals...only the profit.  If you spend your seed money, you're out of the game.

1 - Buy/rehab flip for $100k
2 - Flip for $125k
3 - Buy/Rehab $125k
4 - Flip for $170k
5 - Buy/Rehab $170k
6 - Flip for $200k
7 - Use $100k profit to buy Rental(s)
8 - Buy/Flip with remaining $100k
9 - Repeat,.....

....or, the way I did/do it,...

7 - Buy/Rehab $200k
8 - Flip for $250k
9 - Buy/Rehab $250k
10-Flip for $325k
11-Use $75k for Rental(s)
12-Flip $250k for $325k
13-Use $75k for Rental(s)
14-Flip $250k for $325k
15-Repeat....