Flips or rentals? Which of these two passive income properties do you think is better for business?
Both are fantastic choices for generating passive income with each having its own advantages. Let’s take a look at the two to find out which one is better. I’ll also share my personal opinion on what I think holds more water.
I started flipping houses and it was great. It brought in a lot of money. The catch with flipping is that you have to do it consistently and regularly if you want to earn more.
If you have a hard money loan, then delays will bring your profit down. Regardless, you still need to pay the lender on time so that can be quite a challenge. This is why you need to constantly flip houses in order for the stream of money to keep flowing in. Flipping is excellent, but it requires a lot of work to sustain.
On the other hand, rentals are more secure. It made a lot more sense to me to invest in it than flipping houses since it’s more stable and at the same time, it helps me in shaping my own legacy to pass on to my daughter, to her daughters, and so on.
With rental properties, the funds keep going in. You’ll have to shell out a lot initially and wait a little longer for the profits to come in, but once everything balances out and settles down, the passive income just keeps coming.
So to answer our question on which is better for you: it depends.
It depends on your goals. Do you wish to profit on properties in the next 3 or 6 month? Then flipping houses is a smart option. Personally, I lean more towards rental properties for the security.
When you do look into these opportunities, don’t be afraid to seek other areas to boost and grow your business. It will take a lot of work, but when you see how much it propels your business forward, it will all be worth it.
Lastly, experience will always be your best teacher. Believe me on this one. I’ve been through both sides and I wouldn’t be able tell which is better for me if I hadn’t tried both.
I hope I was able to help enlighten you on this. It really depends on how you envision your future. If you have questions, please don’t hesitate to reach out! We’re always happy to help.
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