We are working on our first flip. Our goal would be to do between 6-12 a year for active income. We would also like to create a passive income stream with rentals as well. Our first thought was to not use the flip income and once we had enough saved purchase a rental property in cash or auction. So possibly 2-3 rentals a year that are fully paid off. I'm curious as to what others do. We own a remodeling company but I would like to see us get away from dealing with customers on a daily basis and strictly doing flips, but if we do this we would have to use the flipping money to live, which would keep us from using that money from purchasing those rentals. Just curious what others do and their structure looks like.
@Chandra Mcculloch I started in the business as a small remodeling contractor in 1997 so I completely understand where you’re coming from especially with homeowners in the age of HGTV. Thank goodness that wasn’t around when I started out.
Buying single family homes to rent especially with cash is not going to get you where you want to be quickly or efficiently and definitely is not the best use of your cash.
With your experience and skill set you should focus on scaling the flipping business and maybe get into spec houses and infill development if that interests you then invest your cash into larger commercial and multifamily properties.
Of course this requires education so you know what you’re doing but that’s how you get to game over n a few years vs a lifetime.