It is true that with mortgage interest rates at record lows and low home prices building an empire of rental properties is extremely attractive. However, flipping houses is still extremely profitable and remains an essential strategy for those who want to make big money from real estate investing.
Creating strong levels of passive income through a portfolio of rental properties can help you build wealth and plan for retirement. However, if you need money now and you want to enjoy living life to the full now, having rental properties throwing off a couple of hundred dollars per month isn’t going to give you everything you want. Additionally you need to consider that if you put all of your resources into rental homes you are simply going to have to wait for your capital to grow instead of being able to turn it over again and again by flipping houses. This will not only keep you flush with cash but will help you to build up your nest egg faster. Of course taking on a few select rentals while the market is so ripe is smart real estate investing but not at the expense of leaving yourself without liquid funds.
There are those who doubt the ability to consistently flip homes in the current market with so much inventory on the market. However, not everyone has invested in a quality real estate investing education and knows where to get the discounts you can. Plus they underestimate the ease of buying low and selling low. This is the secret to successfully flipping houses in high volumes today. You don’t have to scoop up foreclosures and wait for them to sell at full retail mark up. You can let them go at sizable discounts to other investors or savvy home buyers and still make a tasty profit.