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Whats more profitable: Flipping Houses or Renting Out

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Mr. Real Estate | 30 Jun 2015, 03:57 PM Agree 0
I understand that there are pros and cons in both situations, but Im wondering if any experienced investors out there could shed some light on the topic?
  • Aisha | 03 Jul 2015, 07:20 AM Agree 0
    I always saw renting out as long term, possibly part of a retirement plan. Flipping houses is a more a business plan.
  • Travis Royle | 11 Dec 2015, 12:13 AM Agree 0
    I use to flip.. then I bought and held... now I buy flip hold. I find this the most profitable way of doing it as you build the equity, refinance, rent. The outcome is you now have your original equity back with 20% equity in, plus an income asset that appreciates over the years.

    Travis Royle
    Sales representative
    Century 21 Lanthorn
    • Tomthemoneymaker | 29 Jan 2016, 10:00 PM Agree 0
      I totally agree with Travis Royale. I personally have been investing directly in equity lending ( first and second mortgages), renovations, builder and investing in multiplexes that I currently own rent and manage directly. The key to real estate investing is to buy...hold...then refinance your existing properties and keep buying more properties with upside. Keep it simple...just keep repeating this process over and over and you will be shocked down the road with your cash flow and net worth among many other benefits.
  • Hans | 18 Jan 2016, 09:24 AM Agree 0
    I have purchased 7 properties in the last 6 years, 2 of them were extra lots that I deeded separately on closing for future use. The other 5 homes were fixers requiring about 25,000.00 to update and decorate. I purchased and rehabbed each of these 3bedroom homes with a line of credit on my principal residence. Then I rented the home with a 1 year lease to a qualified Tennant. Next I approached a bank to do an equity mortgage at 75 percent of the new appraised value. Most times I ended up with a mortgage about 20,000.00 more than what I had invested in it plus I retained 25percent equity in the property. My most recent one didn't appraise as high so I ended up with about 10,000. Of my money in the property with 25 percent equity but I ended up with a building lot beside worth about 12,000. ,so it is paid for with no mortgage on it. All of my rental homes have a cap rate between 6 and 7 and except for 1 of them I do not have any of my money tied up in them. Once I finance them I start looking for my next fixer to buy. I still have the same line of credit on my home so I can buy and close quickly which helps me to buy at a lower cost to me.
  • Fayyaz | 21 Jan 2016, 11:16 AM Agree 0
    Better to flip over property instead hold for long term.<a href="" > Power of sale homes in gta</a>
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