Is It A Better Investment To Flip A Home Or Rent It Out?

There are unlimited resources available when it comes to real estate investing. The BRRRR Method can be essential for investors who understand the housing market and want to create a stream of passive income, leaving little to no cash of their own in each deal. However, many people don’t want the hassle of continued involvement that comes with renting a property. As with any business strategy, there are pros and cons to both. It all depends on your goals and what you’re willing to put into it.

Ultimately, the stark difference between flipping a house and renting it out lies in semantics. Flipping a property is not real estate investing- it’s active and taxed as such. It can an extremely profitable endeavor, but it requires more effort. However, once investors are through this initial process, there is a much faster return. While many argue that flipping properties removes the hassle of property management, but property management can be outsourced to a professional manager. 

While flipping can bring a return quickly, renting still has the potential for much better long-term returns. Consistency is perhaps the most significant advantage of this investment strategy; a monthly income from rent can allow investors to find a stream of passive income through real estate. Another incentive to rent out properties is that the value and rents will increase over time, allowing you to increase that monthly income. The greatest benefit of buy-and-hold investors is often overlooked- depreciation. That depreciation is quite literally cash in your pocket in addition to rents.  If you are new to the concept of depreciation, reach out and we will walk you through how it works and the long-term benefits.

End all be all, there isn’t one perfect real estate investment strategy that is guaranteed to work for you. Flipping is an excellent strategy for those that need to build capital, but the ultimate goal should always be to keep properties and let them grow and depreciate passively, creating generational wealth. When you flip a property, you stop making money when you sell it. When you rent, you lock in that income indefinitely and passively. Fortunately, some methods can work for both types of investors. Boise Turnkey offers investors the opportunity to invest as little or as much as they please. We are your feet on the ground, will find and negotiate properties for you, and will even handle the tenant side of rentals with our in-house property management company. All you need is a desire for passive income through real estate investing! If you’re ready to start your investment journey in Boise, contact us at info@boiseturnkey.com or click here.