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should i rent out a house or should i just flip it

i have been hearing a lot about renting out a house or just flipping a house to make money. i do have a real estate agent in my family that i spoke to about the idea and they told me to go for it. i just have to have a good job and i really need to fix my credit. i just want to know how should i go about starting out the process. this is something i would like to do in the next 2 years, i know that with either renting out or flipping i will make money. i would like to start in my home state which is nj to see how it goes and then go from there. right now i am just in the learning process feeding off the information i receive about flipping or renting out a property.so please any tips information would be great
  • July 17 2013 - Jersey City
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Answers (4)

I would recommend searching for a professional in your area that handles investment properties that would be willing to work with you. A professional rental/commercial real estate agent or lawyer that has experience in this area would be able to look at the capitalized interest of renting versus the return on investment of flipping. 

Ask around and do research on the professional prior. Even asking to see their portfolio of properties they have been involved with. 
  • August 26 2013
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I really do not know what areas yet i still have more looking around to do but maybe certain places in the hudson county just to start out And then looking around to other good places once i get my feet wet...i am also looking into doing this with a friend of mine that has some good knowledge about this who could be a huge help.....as for carpenters plumbers and electrician there could be some people i could ask for the help and would do it the rite way....one of my major concerns of renting out property is whole landlord thing i might just get a property management to do all that for my properties
  • July 17 2013
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It all depends on the area. There are areas worth renting out bc I know they will always be rented. Or others are tougher to rent so I would think of flipping. Which area are you thinking? Hope that makes sense. Melissa Silva Weichert Realtors  [contact information deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • July 17 2013
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If you are smart and have a trusted team in place like carpenters, plumbers electricians and the RE agent in your family that maybe will give you a break then I would say flipping might be a good thing for you.  If you can do a lot of the work yourself so much the better. There is nothing like "sweat equity" to earn money but writing checks all the time to other workers can eat up any profits.  
  On those TV flipping reality shows they show the buying cost, the remodel cost, then what they sell it for which is usually a profit. What they don't show are the carrying costs over the months it takes to repair, list and close on the house plus the fees paid to realtors, bank and attorney etc..  
  I am a landlord and it can be tough sometimes. You could get lucky and find some terrific tenants that will love your property the way you would but in most cases things get broken and damaged that leave you scratching your head as to "how the heck did that happen"
  If you plan to rent take a look at the long range forecast. Is the market in your area up and coming or is it at the peak and over the next 5 years or so property values will be levelled off.  In a perfect world the rent will pay your mortgage and someday in the future you will be able to sell and cash out the equity but if your area is not increasing in value than what would you be waiting for? 
  I'm sure others will chime in with more good advice  
 Good luck 
  • July 17 2013
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