Fix 'n Flip? Or Buy'n Hold?

[William Ward]

I am curious where investors are deciding to put their money based on how they see the market? If you were a flipper, have you stayed course or are you considering rentals now? I am tryin got see how the masses are investing their money.

[Daniel Burke]

Quote from @William Ward:

I am curious where investors are deciding to put their money based on how they see the market? If you were a flipper, have you stayed course or are you considering rentals now? I am tryin got see how the masses are investing their money.

The way I see it it all depends on the type of investor and their goals, portfolio growth vs instant cashflow. Flippers are in it for quick short term profit. Buy and hold for the long term asset appreciation. These are interesting times. Any flipper that is in over their head on a project could get burnt really bad if market conditions deteriorate quickly & their contractors are moving at a snails pace. Hold costs compounded with reduced home prices in the market could easily add up to tens of thousands potential losses. It’s even worse if they took out a hard money loan to finance the rehab. If they are lucky they could rent out the property and hope for the best. 

As for the people that buy and hold they will most likely ride out this downturn if they have enough cashflow and rent in their market stays the same. With increased interest rates & inflation we are at a turning point. A financial recession isn’t a possibility it’s only a matter of time. Smart investors will run towards the market downturn when 99% of the general population is screaming the sky is falling. Creative financing with the pandemic low interest rates could come in play and help out both the buyers/sellers.