If you plan on investing in real estate, should you focus on flipping houses or on long-term property ownership? The answer actually depends on your goals.
Where can you make more money when investing in real estate: flipping houses or long-term ownership?
Now that that market is beginning to sway in favor of sellers, this is a question I’m hearing all the time. The answer actually depends on your goals.
People who flip houses generally do so on the side. It isn’t typically a primary income source. By the time they pay taxes on their returns, they’re left with a net profit that probably doesn’t resemble what you’d see on HGTV.
However, if you’re willing to quit everything else you do, you can make flipping houses a full-time career. To be successful, though, you will need to develop a lead generation strategy, a marketing plan, and have a number of other systems and resources in place. Yet, like in any other industry, only the top percent of those who follow this career path will reach a high level of success.
Moving on, long-term ownership is another option to consider if you plan on investing in real estate. This kind of investment can create long-term wealth.
So to answer our original question, most experts agree that long-term property ownership is your best bet if you plan to use real estate as a source of passive income. And unlike house flipping, long-term ownership can generate a substantial profit without requiring you to step away from other income opportunities.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.