Wilmington, DE · Member since 2016 · 116 posts · 59 votes
**typo in title.. should be: Buy&hold then flip**
Hey everybody... curious about an interesting strategy and wanted to see if anybody does this currently... I am currently 24 years old, have 2 buy and hold properties and I am looking to continue on this path. I want to retire early, so that's the main goal with investing. I don't think flipping will allow me to retire early, so buy & hold is my main focus.
However, I was curious... Does anybody alternate between buy and hold, then flip a house to make a large payment towards principal on their buy and holds? Then buy another buy&hold, then flip, etc...
Anybody see any problems with this strategy, or want to debate some pros and cons? Curious!
Wilmington, DE · Member since 2016 · 116 posts · 59 votes
9y
Ya, I can see that @Account Closed if you don't perform proper due diligence. I ask this question, because I have the option right now of getting an abandoned property for roughly $10-15k, $50-60k repairs, and an ARV of $125. I know the ARV is incredibly accurate, as we moved here a couple months ago.
Lender · Aventura, FL · Member since 2016 · 31 posts · 8 votes
9y
Many of my borrowers do this. Rents are particularly high right now, and you can lock in a 30-year rental loan for 5-8%, at least that's what I'm offering. So the spread you make on the rental is really nice, and much more passive. I also lend on flips. There rates of returns (if done well) are higher on flips.