It’s impossible to channel surf without seeing at lease a dozen shows about “flipping” houses! But before you “flip out” on flipping, consider the pros and cons of flipping vs. renting.

Both flipping and renting are excellent ways to build wealth. The main difference between the two is whether your are looking for “quick cash” from a flip, or whether you seek to build equity through the long-term ownership of renting your property.

The first step of a flip is to purchase a home in need of some minor repairs, at a bargain price. Once the offer has been accepted, it is wise to develop a timeline by which to adhere to after closing. After closing, the real work begins! Ideally, the changes you make to the property will be primarily cosmetic, and will require very little structural changes. Paint, fixtures and appliances are very basic improvements that make a substantial improvement to the house. The measure of success in a flip are simple – the bottom line of profit when the home sells! Be aware of the risk that the property may not sell immediately. It is always wise to use a Realtor to help you choose which investments are most likely to sell in your neighborhood.

Purchasing a property for renters is going to be quite the opposite from flipping. Instead of a property that is attractive to buyers, you will be looking for properties that are clean, priced well, and have the necessities. While having rental property can be quite profitable, it is also more work than more people realize. You must be a landlord who can maintain the property to keep it in working order, collect rent, and occasionally evict tenants.

So the question is, in the Hickory market, what seems to be the safest choice? It’s impossible to say for sure. The fact is, all this media frenzy about flipping houses has got a lot of people into some serious financial distress! New investors watch these shows and become inspired to buy and flip – after all, it looks so easy on TV! However, in the end, while they may have planned on flipping their investment, they have no choice but to rent it out. Whatever your decision is, we advise you to use the services of a Realtor who understands the Hickory market and can help you during your investment.