Which Is Better? Flipping and Selling or Renovating and Renting?

Which Is Better? Flipping and Selling or Renovating and Renting?

The debate on this question is strong and the real estate investor community is torn on this question. Which is better? Is there a clear winner or do the differences simply in personal preferences? Do both make equally good options for real estate lenders and investors? 

No matter who is the “winner”, the best part of real estate investing is that anyone can start doing it, even if you don’t own a home yet. You have to start somewhere and if you are renting a home, the next step is to boost your credit score so that you can get started growing your real estate investments. That is where CreditRentBoost.com comes in. You can begin credit reporting your rent payments to get a credit boost overnight. No need to search for “How to get credit for my rent.” Use CreditRentBoost.com to get started.

Once you get your credit boost, you can weigh the pros and cons of both choices and make the best decision for you and your goals.

Flipping Houses

Pro: No Property Management Duties

When you flip a home, the project is complete. No need to worry about the home anymore because it is no longer yours. This frees up your time and attention for your next project.

Pro: Quick ROI (Return on Investment)

When flipping homes, you see a quick return on investment. You can typically flip a home and sell within 6 months to 1 year, getting your initial investment plus your profit back into your hands in a relatively short time.

Con: Taxes

Capital gains tax can be an excruciating word for many real estate investors. These taxes can be anywhere from 10-30% on the profits of your flipped home. Ouch. 

Con: Inconsistency in Income

Flipping homes isn’t a consistent form of income. You are at the whim of the forces of the real estate market, supply chain and labor forces and any other random factors that can affect your project. It can be hard to gauge exactly how much you will make on any given project.

Renting Houses

Pro: Tax Incentives

Renting homes comes with many tax incentives. Real estate investors enjoy a multitude of real estate tax benefits that home flippers do not.

Pro: Monthly, Consistent Income

Rent. The most consistent bill in most people’s lives. So consistent that renters can use the rent to get a credit boost. Credit reporting your rent payment is easy with CreditRentBoost.com and will have your renters yelling from the rooftop, “I get credit for my rent”!

Every month, you will have a consistent and steady income from your rental properties.

Pro: Appreciation

Historically, real estate value has consistently increased. That means your investment in your rental should appreciate over time.

Con: Ongoing Research and Work

This takes a bit of the sheen off the term “passive income” from your rental property. Oftentimes, real estate investors and lenders end up researching and searching for more investment opportunities.

Con: Vacancies and Maintenance

Vacancies and maintenance can both be very expensive and cut into the viability of your rental property. That is why having proper systems in place will help you choose renters and properties that will reduce the risk of these from happening.

Which is the Better Option?

As you can see, there is not a clear and definitive answer to this question. Both flipping and renting are good options for real estate investors. What is clear is that, for renters, getting a credit boost can be simple and easy. CreditRentBoost.com allows renters to use credit reporting for rent payments, which can boost their credit score overnight. Check out CreditRentBoost.com today to see how quickly you or your renters can be saying to your friends “I get credit for my rent!”

Leave a Reply