Flip Two, Rent One - Strategy

[Ryan Fitzhugh]

Hello BP and members,

I believe every investor should create a strategy that works best for them. I also believe that you should not try to reinvent the wheel. I have been talking with a few people about a good strategy to build off of and have repeatedly heard: flip two houses and buy a rental. Then flip two more and purchase another rental and so on. 

I would love to hear about some other strategies that people have had success with. I am currently wholesaling 15-20 properties a month in Saint Petersburg, FL with New Western Acquisitions. I am coming to a point where I am ready to start investing myself. I have gotten great feedback from my investors and seen great success from them. Knowledge is power, so any input would be greatly appreciated. 

Thanks

[Jeff Copeland]

I think alternating between flips and buy & holds is a great strategy. I've done much the same over the past few years. My only caution would be not to be too rigid about it. You have to take what the market gives you sometimes. 

For example, you may find a house that would make a great rental when you are actually in the market for a flip, or vice versa. And you may finish a flip and decide it actually makes a great rental and decide to hold it. I've had both happen to me...sometimes you have to roll with it. Especially now - good flip candidates are hard to find. (Partly because New Western and others snaps them up, then marks them up to the point they no often longer make sense :-) ).

That's not a knock on you or New Western - I'm familiar with you guys and your business model, and agree that it's completely legitimate. I'm just pointing out that you'll find it's tough to compete with institutional investors who are wholesaling with deep pockets and high volume when you are an individual investor.