Starting Out , Flip vs Invest?

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Resolved-Thank you

Abel Curiel · Answer

Hello Colt,

It is possible to make $20K/yr as a side hustle but it will require time and/or money.

First you have to find and negotiate the deal.

An investor-friendly agent can search and negotiate on your behalf but you'll have to factor in commission as part of your purchase and resale costs. Some contractors may charge for site visits throughout your search as well since it takes time for them to tour properties and draft SOWs.

Post-acquisition, you'll need to manage the project OR hire a manager to oversee the GC's work and progress.

Agreed with @Kenneth Garrett on the LTR benefits.

All the best!

Abel

Kenneth Garrett · Answer

In my opinion, if your doing flips it still requires close oversight and managing contractors.  It still takes time on your end.  In the long run a rental portfolio will generate longer time wealth.  So many advantages of depreciation, mortgage pay down and property taxes while your tenant is paying for all this.  In addition, appreciation of the property continues to rise.  I have always self managed for the past 15 years.  The amount of time it takes to manage properties if you are able to pick good tenants is very small.

It’s just a slower method.

Peter Mckernan · Answer

Great question, you can make $20k extra on flipping. You can make that or more on a flip anytime! That being said, you need to break into the work by getting some type of mentorship, or some type of internship. The other option is partnering with someone that has experience. As the last 6-10 months has shown a lot of investors, the market can change (more inventory) and create a loss in investing instead of a win. So, going into this you need to buckle down to be well prepared to win, and doing the above will set you up for success!

Colt Bosson · Answer

@Peter Mckernan I love that Peter, thank you. Any ideas on where to find flippers in my area that I could reach out to?

Colt Bosson · Answer

Thank you all for the feedback! I've managed hundreds of short term rentals for the past 10 years so the managing of vendors doesn't worry me there, but I agree, it can certainly be time consuming. I appreciate everyone's thoughts here, thank you

Colt Bosson · Answer

@Kenneth Garrett very much appreciated Kenneth, thank you. I agree it is slower!

Colt Bosson · Answer

@Jason Garriga I'll be checking them out today, thank you for that!

Caleb Brown · Answer

It is doable. With a flip there will be a lot of time involved on the front end finding the deal but also getting the rehab done. If you don't have a lot of time then it might be more of a headache then the 20K (or whatever amount) is worth. Managing contractors and vendors is always a joy. I would network locally and start running numbers on flips.

Starting Out , Flip vs Invest?

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