???My husband and I are just starting out in RE investing and we’ve come to a screeching standstill. I want to invest in rentals for the long term cash flow and he wants to invest in turn over (flipping) properties. Now I realize there are different tax implications as well as business (LLC vs Corp) and as NOOB’s which is more realistic? We have excellent credit (FICO) I haven’t opened a HELOC yet and have a small mortgage on our home.
The possibilites and rewards are there - just don’t know which direction to turn. Any words of wisdom would be greatly appreciated. I don’t want to be part of the -shoulda, woulda, coulda- crowd.
Thanks, mngirl
Mix it up and do both! Do one for your long-term “buy and hold” strategy and do one for his “capital” generation strategy…“rinse and repeat until rich”!
The way we do it, we can go either way. The market we deal in is such that we can rent or sell a property for profit doing the same amount of fix up and/or rehab.
We are closing next week (probably) on a proprty that we are paying $50K for…we will put about $3K into and either rent for $650 a month or sell for $63-67K. So far, we are strictly “buy and hold”.
Good luck!
Keith
Mngirl
just wanted to add this perspective…
if you had 20k more in your pocket RIGHT NOW would that make this decision obsolete or at least much easier…?
If money = comfort level
I’d flip the first property !!
L.H.Williams
::)I think the reason my husband is wanting the quicker cash plan is he is worried about his plant closing=no income. I’m worried about owing a bunch of self employment taxes and having to worry about that from now on. We’re not on the IRS radar and don’t want to be.
I find all the RE investing strategies exciting and fun. He seems more intense and serious. Granted we are not rich but I think we can compromise.
I have made contacts with other investors via our local REIA club so I’m also going to broach this subject with them. I’m sure these are pretty basic decisions when first starting out and they also know the market here in the Twin Cities.
Sound like a plan? 
Thanks for the suggestions- you can never get enough info.
Appreciate it! :-*
mngirl
this is a common strategy…to do both.
accumulate rentals for long term wealth building, and flip properties (dave lindahl calls them “chunkers”) to pay down the mortgages on the rentals and to raise money for down payments and business expenses.
i have started accumulating rentals, now i’m trying to get into some flipping/wholesaling/rehabbing. i’ll keep you posted on my progress.
Could not agree more Keep the best flip the rest and you will be just fine! That is the true key!