Landlord · Dallas, TX · Member since 2012 · 505 posts · 34 votes
There are numerous factors that go into what makes a subject property better as a flip or rent.
What are some of the factors you use to evaluate the subject property to reach a conclusion?
Some things I look for
-If the comps show the property rents for $1 per sq ft or better, definite rental
-If DOM is greater than 90 not good for a flip, probably better as rent
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
I say both of the metrics you stated can be irrelevant. for example, many high price properties take longer to sell, so the DOM will be > 90, yet most of those would never provide positive cash flow.
If in the 'hood, it's probably a rental.
If it has lots of landscaping, probably better as a flip.
The key metric: can the rent for that specific property in that specific location support positive cash flow? If yes, then consider it for a rental. If no, then consider it for a flip.
Even if you have a property that meets that key metric I just gave, there could be other features that work against that property being pigeon-holed - so you still have to use other criteria.
Things like location, property taxes, school district, ...
Real Estate Agent · Ivor, VA · Member since 2011 · 73 posts · 21 votes
14y
To me there are 3 things to consider:
1. Do I want to be a LL in this area?
2. The condition of the property and do I have the cash on hand to rehab it if needed?
3. Did I buy it cheap enough that I can flip it fast for a quick profit?
Long term is good but if I use up all my money for long term investments I won't be able to jump on great deals when they come up.