If you have made an exclusively cheap deal buying a house and if the house does not require too much of amendments then flipping is the best way.
But if you are investing money in real estate and or upgrading to add value to the house and you did not buy the house at a discounted price you are in the dilemma that haunts most home owners; Should I flip or should I rent? The answer is not difficult if you scale the benefits of renting vs. flipping.
Some of the benefits we think renting is better over flipping are detailed below to help you make a decision:
- Cash Flow: You are assured a definite cash-flow income. This could be the ideal way to generate some income and support the mortgage payments.
- Business Model: You could hold on to the rental portfolio and pass it over to the next generation as a business model if the gains are lucrative. As it is a potential source of income, security and wealth for generations to come.
- Risks: There is substantial risk. This is mostly related to tenants; but if you choose the tenants wisely and set ground rules the risk factor can diminish instantly.
None of the above factors can be compared with flipping a house as the process involves taking risks and above all experience to make lucrative profits. Now that you have clear idea making a decision should be easy to resolve the renting vs. flipping dilemma. Don’t for get to leave us a comment and share our handy tips.