Flipping Houses vs Owning Rental Real Estate


Flipping Houses vs Owning Rental Real Estate

Flipping houses and owning buy and hold rental properties are two of the most popular real estate strategies. In this video, I’ll share how each strategy works, and what it means for you as a real estate investor.

You’ll learn what to expect from a house-flipping project, and what it’s like to own buy and hold properties. There are vast differences between the two. This video is for you if you’ve ever wondered which real estate strategy is best for your lifestyle.

When choosing between these two options, you should consider both your money and your time. In this video, I’ll discuss the cash flow, taxes and time commitment. I’ll also share the benefits of passive income through real estate investing!

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20 Responses to Flipping Houses vs Owning Rental Real Estate

  1. Panagiotis Poulos

    I have a house that I recently renovated it was inherited to us and we stand to make about 115,000 in profit I was planning on selling this property in order to take 68,000 and pay off my existing three unit house which will save me around $900 a month in the mortgage and with the remainder buying another multiunit what do you think should I sell or keep? This house would rent for $1200 a month

  2. Logan Salt

    What is the minimum amount you accept for an investment ?

  3. 5000000 views

    I totally agree with you. We have flipped houses and looked back with regrets because of the unanticipated rise in their value. we flip and then payoff our rental houses. So, flipping is done to have free and clear houses faster.It works for us.

  4. Eddie

    Absolutely great advice thank you my, friend keep up the good work.

  5. Hector Idarza

    What I have wondered was, if I only have enough to buy just one $50,000 home. How long would it take me to purchase a few others? I really want to own rental properties. Not sure if you understand my question.

  6. AZDuffman

    The biggest problem with flipping is you almost have to be absent a conscience to do it. What you see on TV is complete ********. It is very, very hard to do a good job and make a good profit when you sell. You can do good work and live in it or lower-grade work. A few small issues and profit evaporates.

    Also, flipping is impossible in the markets of 3/1, $50-70K homes. You need a very high top-end to make a profit since the stuff at THD costs the same no matter what house you are putting it in. This is why those shows are almost always in a high-cost market like Vegas, North Jersey, LA, Chicago, or Long Island. You cannot dump $40K into a place in Akron, OH and make $50K.

    Anyhow, partly because of your videos motivating me I am meeting my realtor to look at a few places in literally 2 hours from now!

  7. Mechanicalhobby

    What about a 1031 Exchange?
    Fix a house, sell it via the 1031 Exchange, should you not be able to just move that money into another property?
    For example, you buy 2 bed 1 bath house, fix it, sell it and with the same funds via 1031 Exchange, you buy a small duplex with the difference, then repeat and then buy a tri-plex or 4-plex and repeat. The 1031 should be able to be used to defer Capital Gains until you finally make the decision to just sell the final property.
    I'm a property investor too, have a handful of property and while the first place we started was our own home renovating scraping by over nearly 4 years of renovating between free hours, we managed make the leap and start buying rentals. I much prefer buying and holding, and have got investors involved too, but I've also wondered on the advantage of flipping (without me doing it myself) and then building more quick capital to grow.
    Any thoughts on the 1031?

  8. obalajadia

    My wife and I buy a property and keep it for at least 3 years, or until our expected selling price comes. During that time of holding it, we rent it out. Once our target price comes, usually within a period of 3 years (but we keep on holding it over that period until our target selling price comes), we sell it. Out of the sale money we buy two other properties. We don't rely on renter's monthly pay, we wait for the big price. Timing is the factor here. Renting is too slow for us, that is why once the best money comes, we get it and out of it we buy other properties.

  9. song dong

    I like the way you are doing -buy and hold

  10. Dimitri White

    Loved the video would you consider making one focused a little more on tax depreciation

  11. shipdog44

    I agree. Keep the property and rent it. Don't be the cheap landlord be the best. Don't cut corners and you can attract better tenants and will have less problems. I have a full time job and I buy and remodel two per year. I keep putting all the profit back into more property. I have been doing this just over three years. I did flip one and made a lot of money to get started but it took a year. I have almost matched my job income and in three more years I'll retire at 55 with over a million dollars in rental property and collecting over $!5K per month managing 12 properties. Keep them.

  12. Too Whom It May Concern

    Looking for an investor/partner I'm military investing in rental properties. I need capital for down payments. Most properties I invest in are turn key some in college towns, military towns. Gross Multiplier at between 10% and 12%. New up coming investor please contact me if your interested. Thanks!

  13. April

    I really like this video. I am a landlord and a flipper. Although I don't like getting those after hour calls being a landlord, I was getting tired of finding new properties to flip with its long rehab. period. This video gave me a better numbers perspective on the financial advantages of owning rentals. Love the idea of owner financing and claiming depreciations on my taxes and not paying enormous capital gains.

  14. xquizts

    +Morris Invest, with regards to your point against selling and capital gains tax. What to you mean by seller financing option with someone who wants to move in? Or selling to another landlord? How does that avoid the capital gains tax issue? In the end there is still selling and still has to pay the tax right? Please advise Thanks in advance!

  15. Justin Olsen

    Are the capital gains taxed the same if you buy and sell as an LLC? If not, what is the difference

  16. wave

    so if you own the house for more than a year you dont pay capital gains ?

  17. LoveMyAbeshaWomen

    Hi Morris, I've always wondered, how does rental income get taxed? Is it ordinary tax?

  18. Familia Gallardo

    Yes buy and hold all the way! Thank you for your videos. I was on the fence about leveraging or paying off my 3 mortgages. After digesting some of your sage advice, I dropped a few thousand into a mortgage today!! Going to keep this up every month until everything is paid off within 9 years or sooner :]]

  19. Olivia P

    My region of the country (roughly 100 mi diameter in rural ish NC) has seen real estate prices rise by about 38% since June '16. I feel you left out one key detail with rental property. Lets say you buy the property for $50k today, it is worth $60k and rents for $700/mo; 10 years from now, the property you purchased for $50k might have a value of $90k and be renting for $1,100/mo. Values & income rise over time 🙂

  20. Elsa N.

    Good to know. Thanks!!!