The question of whether flipping or buying and holding real estate is the best strategy for investing in property doesn’t have one correct answer. Instead, choosing one method over the other should be part of a clear strategic plan that considers your overall goals.
You should also take into consideration the opportunities presented by the existing market. Here is a look at what is involved in pursuing each strategy and how to decide which one might be right for you
- Flipping properties and buying and holding real estate represent two different investment strategies.
- Owning real estate offers investors the opportunity to accumulate wealth over time and avoid the stock market’s ups and downs.
- Flipping can provide a quick turnaround on your investment and avoids the ongoing hassles of finding tenants and maintaining a property, but costs and taxes can be high.
- Buy-and-hold properties provide passive monthly income and tax advantages, but not everyone is prepared for the management and legal responsibilities of being a landlord.