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To Rent or To Flip...

By
Real Estate Agent with Kathleen Cooper, Sposato Realty Group 9084437/Brokers

For Rent Sign 

Right now is such a great time for investors.  We are in a deep buyers market and local investors can find many hot deals in real estate these days with low prices and favorable interest rates.  That leaves one more question, to rent or to flip?  I highly would recommend renting and holding on to those great deals for a little bit of time.  With activity being slow on the seller end and competition being so heavy, it's hard to turn and flip those deals into cold hard cash in a short time.  Unless you have the money to pay for the home in full, you are looking at 150+ days on the market for competitively priced homes meaning you will have to make mortgage payments and be paying interest while you carry the home in addition to the costs of maintaining and even fixing up the property.  Finding a great home in a desirable neighborhood to rent out may be appealing to people looking to rent, especially if the rent price is fair.  Holding on to that home until the market evens out of the foreclosure stream we have been having and comes back up some will make for a great profit in the long-run.  If you are seriously considering becoming an investor and want to look at all of your options, consider this strategy. 

Keith Stoller
Keith Stoller Tax & Business Solutions - Bakersfield, CA
Investors wanting the quick flip to get profit got burned pretty bad and I hope they can hold out for the long haul.  Auctions are another way to go to move a property fast assuming the person heading it up is familiar with your region.  Buy-and-hold investors always make out in the end.
Nov 13, 2007 04:23 AM
Nicholas Christopher
Century 21 Rauh & Johns - Gloucester Twp, NJ
Communication Is Key
I think your exactly right. Many flippers in my area are sorry now.
Nov 13, 2007 04:34 AM
Sue Melhorn
The Bean Group - Dover, NH
Licensed in NH, ME and FL!
Couldn't agree with you more Kathleen!  Now is definitely the time to buy as long as your not planning on selling again relatively quickly.  I hope all is well with you and your family!
Nov 13, 2007 04:38 AM