Buying and Holding Real Estate VS Flipping Real Estate

**LVrealestateHELP** · 12-14-2008, 08:36 PM

Most of the investors I know are buying because of the lower prices and are now holding for the long term positive cash flow and appreciate.

Are you guys flipping houses still? From what I have read/heard/experienced it is still to much a bear market to do quick flips. I remember back in the good old days selling homes in 90 days and that included rehabbing them and slapping plasma TV's on the wall, and still selling them for less than the comps.

**VAInvestor** · 01-10-2009, 04:32 PM

I am holding onto everything. Flipping is tough in my market, and only works in the areas that are still very desirable. I think if you can afford to hang onto a property and it cashflows in the meantime, you'll be better off holding it for 4-5 years. But it all depends on the market and the area - some locations may never really recover/appreciate much.

**LVrealestateHELP** · 01-11-2009, 10:18 AM

Yeah that's pretty much what I expected. Thanks for your input.

**angelinalove** · 01-12-2009, 12:33 AM

Flipping homes is still a great idea in the context of the present real estate scenario.

**LVrealestateHELP** · 01-12-2009, 07:58 AM

Originally Posted by angelinalove

Flipping homes is still a great idea in the context of the present real estate scenario.

Are you flipping houses currently? Where are you located? Do you have a strategy that has proven successful for you?

**Jared** · 01-12-2009, 03:51 PM

I got away from flipping for a few reasons. One of them is of course the market changing. The biggest reason for us financing or lack thereof. We were never big flippers (11 flips in 4 years), so we weren't cash buyers. Plus using a hard money lender these days is INSANE! I mean, if you can find any that are still lending.

I think buy and hold is the best strategy right now, my humble opinion.

**Commercial Agent** · 01-12-2009, 05:37 PM

One strategy is to buy quality properties in the best locations, loose money in the short term and win in the long run. This takes money and patience.

**VAInvestor** · 01-12-2009, 06:37 PM

Originally Posted by Commercial Agent

One strategy is to buy quality properties in the best locations, loose money in the short term and win in the long run. This takes money and patience.

I think you'll find that it's exactly that strategy that bankrupted a lot of people over the last year or two: buying negatively cashflowing property and hoping for appreciation. We all know how well that can turn out. I am not saying it never works, just a really bad idea in my opinion. I don't buy/hold anything unless I can make a great rate of return off the cashflow alone.

**LVrealestateHELP** · 01-12-2009, 06:41 PM

have dropped in value enough to where you can now get positive cash flow from them monthly. It is a lot easier to be patient when the property is creating a positive cash flow vs when it is negative.

**James082** · 01-29-2009, 07:00 AM

Flipping has definately become harder to do, you need to be more picky about the homes that you do decide to flip. Right now, the best things to do are buy and hold because prices are low. Subject-to's are another profitable strategy in this market.