Which Strategy is the Right One in this Economy?

Question

There are many strategies that people on this site employ: fix & flip, buy & hold, or buying paper instead of property. Giving this uncertain economy, which strategy are you using and how did you decide which would be best for your and your group (if any). :lol:

Nick J. · Answer

I agree with this statement. Here in the Phoenix market. There are certain areas(pockets) that support different strategies better.

Some like south Scottsdale are prime for rentals(buy & hold) because the area is desirable for renters and investors are able to pick up great properties with little work needed and cash flow immediately.

In summary, I do believe it depends more on your local market as opposed to the economy as a whole.

DANNY MARLAND · Answer

If you are in or near a major city I would highly recommend buying and holding on at this juncture.

In many major metropolitan areas now you can lock in tremendous yields for the rest of your life; with the option to liquidate at a later point in time if circumstances warrant.

For this strategy depending on how many properties you want to buy in the near term - you will definetely need sufficient capital, fairly high income  and prepared to deal with any issues that arise.

Joel Block · Answer

I generally can't make sense of a buy & hold strategy because of the difficulty in securing financing. It is interesting to read these insights because they reflect the range of personal investing styles that are available.

Will Barnard · Answer

I continue to fix and flip, buy and hold does not work where I am at and I am a tired out of area landlord.
I have also started investing in notes, have 2 already and working on the third. I like this because it is passive-profitable and I have multiple strategies inside it, I can hold the paper or flip it.

Although finding the right deals for fix and flip is tougher, I continue to pursue it as it is well worth the efforts.

Aaron Norris · Answer

I know several people working each one of these strategies in California. It really depends on the area they plan to invest and what their personality type is. Some people LOVE working with sellers direct. Some people like negotiating short sales. Some people just love the cut and dry business of vacant REOs.

David Wedemire · Answer

Strategies change as conditions change. Initally I was flipping but ended up with two houses I could not sell so I switched to lease/option which covers my holding costs and the option is at a price just below what I expect the value to be at the end of the lease.

Manny Cirino · Answer

Though I am not a fan buy and hold is with out a doubt the best strategy for this market. This is the perfect time to buy and though there is a chance values will continue to decrease, there is an even greater chance it will appreciate. I say buy and hold! If you can that is.

Which Strategy is the Right One in this Economy?

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