To rent or flip.

[Aebaa5]

Hi all.

We have just flipped our first investment property and can't decide if we should carry on flipping for a another year or go down the rental route.

Pros and cons on both please??

Thanks

 

[PostBrexitInvestor]

Personally I would always buy a property with a long term time frame in mind and treat a flip as a bonus. If you continuously buy to flip all of the time you will get caught out at some stage.

 

[Longterminvestor]

Pros of flippin

Good cashflow
No long term exposure/risk

Cons

May miss out on longer term returns
Miss out on possible rental income

 

[swati1006]

Hi all.

We have just flipped our first investment property and can't decide if we should carry on flipping for a another year or go down the rental route.

Pros and cons on both please??

Thanks

Hello,
Personally I would always buy a property with a long term time frame in mind and treat a flip as a bonus. If you continuously buy to flip all of the time you will get caught out at some stage.

 

[PostBrexitInvestor]

@swati1006 Spot on!

Look long term but if a short term profit emerges them consider it. Sensible property investment.

 

[Longterminvestor]

I have seen far too many property flippers make a number of relatively small gains on short-term investments only to lose the lot and more with one bad apple. While it is never wrong to take a profit, investing in any asset with an extremely short term timescale is dangerous.

 

[lookinginvest]

I dont think that flipping in itself is a viable long term investment strategy for someone starting out in the world of property.

 

[Conrad Paton]

Hi Guys,

Why are you negative with regards to flippin properties long term?
How do you know someone WILL get caught out at some stage?

Could you please help us all out and elaborate?

 

[FWL]

So, Conrad how would you make sure that you didnt lose out on a flip?

 

[realdeals]

In the real world probably best to introduce a mix of flipping, renting and longer term buy to sell. That way risk is mitigated to a certain extent although profits can be too.

 

[Longterminvestor]

There is no right and wrong when it comes to property investment - go with what you feel comfortable with. In reality, as you get more experience, you will likely go for a mix of different strategies.

 

[Farm201]

I agree with more experience, you will likely go for a mix of different strategies.

 

[Longterminvestor]

I often think the property TV programs make it look very easy to buy and flip properties for large gains. Yes it is certainly possible but it is not as easy as the TV shows make it look!

 

[Conrad Paton]

If the TV programs showed the reality of property development, it wouldn't make great TV.

Hence alot of the programs concentrate on the emotional aspects interior design, bathrooms kitchens etc.

Rarely do any of the developers make any actual money, yes the valuations imply that they have large profits, but nobody has actually sold anything on TV.

 

[John Wilson]

Very true Conrad. Even the presenters start to believe their own hype: Grand Designs presenter Kevin McCloud recently lost millions for his investors in his ill-fated property development ventures.

In answer to the OP's question, it really depends what your own personal goals are: are you looking to build up capital, or create cashflow? Obvs if you sink everything into BTLs now then you might not get the cashflow you're looking for, so maybe flip some, BTL some until you reach those goals?