Investor · Reston, VA · Member since 2011 · 683 posts · 191 votes
I just read a thread in the rehab and flipping forum about margins being squeezed due to "buy and hold" landlords. Some of the posters indicated that LL's will be creamed and more flip deals will be coming. I'm curious as to why they would think this. Any thoughts?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
15y
We had the "riskiness" debate on a separate thread about fix-and-flips versus buy-and-holds. People that do each had really good arguments on both sides about why their strategy was less risky. I don't think you can paint with too broad of a brush about landlords getting creamed and more than you can about material costs going up and fix-and-flippers getting creamed.
This debates in the abstract are always simple minded. There is a whole assortment of stuff that can happen to either type of business and many scenarios about how it will all play out.
There is a poster on page 2 that mentions cash buyers running out of money and newbie investors getting "creamed". I'm sure several wanna-be landlords who don't have the stomach for this business won't be around long, but the tough ones will probably outlast 80% of the flippers out there.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
15y
We had the "riskiness" debate on a separate thread about fix-and-flips versus buy-and-holds. People that do each had really good arguments on both sides about why their strategy was less risky. I don't think you can paint with too broad of a brush about landlords getting creamed and more than you can about material costs going up and fix-and-flippers getting creamed.
This debates in the abstract are always simple minded. There is a whole assortment of stuff that can happen to either type of business and many scenarios about how it will all play out.
Investor · Reston, VA · Member since 2011 · 683 posts · 191 votes
15y
I agree with you Bryan. Just can't understand how someone puts out a blanket statement like that. I think it's a great time for buy and hold. I do flips as well, but my main strategy is "bread and butter" buy and hold rentals and has been for years.