Jasz
VIP Contributor
Buying to flip versus buying to turn into rental properties: which will make you more money? Buying a house and then selling it again for a profit is known as “flipping”. Flipping is often seen as more profitable than buying a home to rent out, but it can be risky if you don’t know what you’re doing. Here’s how flipping compares to renting out property, and why you should really consider the latter.
Pros of flipping
When done right, flipping can be a good way to make money on property. You can use your profits from the sale of one property to buy another one that needs fixing up, then sell that too when it’s ready (and so on). You can also build up an impressive portfolio over time by making small profits on several flips over time.
Cons of flipping
Flipping comes with risks too: there’s no guarantee that each property will sell at its asking price; there are fees associated with selling real estate; and finding buyers who have enough cash for the purchase may not be easy if the market is slow or prices are falling (which happens more often than not).
Pros of flipping
When done right, flipping can be a good way to make money on property. You can use your profits from the sale of one property to buy another one that needs fixing up, then sell that too when it’s ready (and so on). You can also build up an impressive portfolio over time by making small profits on several flips over time.
Cons of flipping
Flipping comes with risks too: there’s no guarantee that each property will sell at its asking price; there are fees associated with selling real estate; and finding buyers who have enough cash for the purchase may not be easy if the market is slow or prices are falling (which happens more often than not).