Flipping Houses via the Live-in Flip: Pros and Con

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Venturing into the world of real estate is intimidating. Whether you are making your first purchase of a personal residence or starting a business as a real estate investor, there are many unknowns along the way.

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Typically, there are two options when taking the real estate investor path: flipping houses or buy-and-hold rentals.

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Flipping houses and buy-and-hold investing are both great ways to make money in real estate if you know what you’re doing. However, real estate is not a get-rich-quick scheme and is never as easy as it seems on TV.

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Flipping houses requires an investor to find a great deal, fix it up, and then have a resale value higher than the original price plus repair costs.

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Buy-and-hold real estate also requires a great deal, but instead of selling for a more significant one-time profit (or loss), the investor will rent the property to tenants and benefit from monthly cash flow.

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An individual wanting to purchase an investment property will need to be prepared to pay 20-25% of the purchase price up-front on the home.

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Therefore, you’ll be able to take advantage of a lower down payment and a lower rate by purchasing a live-in flip as a primary residence.

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Swipe Up

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