Flipping houses vs Rental incomes

Recently, there were quite a few so called "real estate guru" in town for real estate seminars about flipping houses.  They claimed that they will invest their money and were looking for local partners.  However, I have spoken to several wanna be flippers. There are no easy way to make money.  If it's so easy, don't you think we will be all doing it?  Fortunately, local real estate is steady.  We have never had an upswing of two folds or more like the rest of the country, so we have limited risk for down market as well.

Our approach is always conservative to buy and hold for rental incomes.  Flipping houses is not for everyone.  We all have different ideas of what the house is like in different definition, lifestyle and condition wise.  Out of pocket money to purchase the materials, labors to fix it up can be expensive.  Without your own investment seed money, it is very difficult to recoup or make money back.  Then, there are capital gain taxes and the up front money of setting up LLC, pre estimated taxes & other legal fees as well.  Consult with local real estate expert about your real estate investment strategies.

Lisa Miller

Lisa Miller

REALTORĀ®, Licensed Real Estate Salesperson
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