Buy And Quick Turn (Flip) Or Become A Landlord

Hey, Investors! Is it better to buy a property and quickly turn it on (otherwise known as "flipping" the property), or should you stick to it and become a landlord?

Answer: Both are right ... and wrong!

While he tried to answer this question, it is a good idea to ask yourself a few questions:

• What is the local market in my property's area?

• What is the future trend? What could make property values rise or fall? Which is more likely to happen?

• How much ROI can you get from renting? What is the fair market rental value?

• How much money can you get from buying, renovating and flipping? What is the fair market sales value?

• How much money can you get from the amount you expect homes to appreciate?

• What are your financial goals?

• What are your immediate cash needs?

The key to assessing whether you are a financial position to be flexible enough to decide. Your situation may decide for you.

You may have some personal expenses, which require that you return your cash quickly.

A: Flip it!

You may not have time to renovate and flip property. You may have to hire a property manager to handle owner tasks while you still have enough to pay even a month.

Answer: Rent it!

Your property may be in a neighborhood that is in decline. Maybe crime rises, or jobs leave without jobs to replace those lost them. Maybe a highway, a factory or any other unwanted will be built next door.

A: Flip it!

Your property is located in an area that is becoming a highly paid job, or the local authorities spend a lot of money on education, or your property is in the way of progress or obvious suburban sprawl.

Answer: Rent it! (And sell it later)

You are in an area where there is more demand for renters (driving higher rents) than there are home buyers (driving down house prices).

Answer: Rent it!

You need to build your asset base, so you have more to invest later.

A: Flip it!

Want a good, stable income and do not care so much about having a big chunk of cash available.

Answer: Rent it!

Is it better flip a property or rent it and become a landlord?

Answer: It depends on your specific situation.