We have been flipping and renting houses for some time now and Ken has this 100% right. The realtor fees and taxes on a flip are very discouraging over time. Also, looking back at what we sold some rentals for looked good then but looks pretty stupid now. Also, the older you get the less Busyness you want in your life. One big factor that decides weather a house will be a flip or a rental is: How much money do we need to put into it to rehab it? If we go all out with all new stuff, then its a flip as we don't want all that investment to get destroyed. If caulk and paint will make it what it ain't, then its a rental. Thanks!
I ended up regretting selling most of my flips. If I had the chance to go back, I would have figured out how to get a cash out loan..... Some day they aren't available on rentals, but I did it!
Very interesting. Although what I hear from friends that have a couple of such properties - they were hit hard during last year. Because nobody wants to pay rent these days. In some cases they actually paid tenants to get out so they would sell the property.
Is it better to pay off the property to generate 100% profit and use the profit for new projects OR to keep doing tax free cash out refinance and using it to buy more properties?
Do both if you can. Keep some homes paid off and refinance others you plan to keep for a long time. Loans are not cheap so if you plan to sell them in the next few years hold off.
Question: How many people living in their home that they purchased 10-20 years ago, could afford the same home? I was shocked by the answer. About 10 percent would be able to purchase their same home at the inflated price. The next question, how many would purchase the same home with the inflated price and higher property tax bill? thoughts?
This is a great strategy, especially now while interest rates are so low and real estate prices going up at crazy speeds, it should be a goal of any investor to buy as many properties as possible
The cash on a cash out refi still has interest on it. Even though it's tax free, you are still paying interest. Wouldnt that be a wash? Either way (flip or cash out refi) you are still paying something correct or am I missing something???? Thank you
no because the interest is covered by your cashflow!! would you rather get 500 extra per month in cash flow, or get 500 less but have a second property? the second property will make more than the 500 in cash flow you lost. forget about interest, thats being paid by your hopefully good tenants
*If you keeps waiting on the right time, you may not get it . Start investing that little you have. The rich got rich by spending less and taking calculated risks that brought them huge returns. Procatinating kills , do it now don't wait until other's succeeds. I started Investing at 28 and now I have made a six figure portfolio, have my own house and touring around the world with my family. Saving is good,but Investing is way better*
flips most of them are quick cheap unpermited tasteless poor workmanship flip and run... flippers lot of homes cant get a loan cash only lot of us dont want or have time do it your self flippers are so cheap is they cant put in a fridge its $800-$1000 ask your agt for the listing history see what it was like before have them show you the agt report buyer beware
they work for me I dont have to work any more as for buying one can buy as primary resident stay at least 2 yrs or more sale no cap gains you do it every 2 yrs up to $250k each tax payer have some good points rentals about re fi cash out can build buy more units pay off a property or just keep it for rainy day
We have been flipping and renting houses for some time now and Ken has this 100% right. The realtor fees and taxes on a flip are very discouraging over time. Also, looking back at what we sold some rentals for looked good then but looks pretty stupid now. Also, the older you get the less Busyness you want in your life. One big factor that decides weather a house will be a flip or a rental is: How much money do we need to put into it to rehab it? If we go all out with all new stuff, then its a flip as we don't want all that investment to get destroyed. If caulk and paint will make it what it ain't, then its a rental. Thanks!
Thank you for sharing! this is very insightful!
Your story is my story. Agree 100%. The fees and taxes are a huge chunk in the end. And "busyness" gets old as you get older!
I'm definitely a flip guy right now. But love this break down
I ended up regretting selling most of my flips. If I had the chance to go back, I would have figured out how to get a cash out loan..... Some day they aren't available on rentals, but I did it!
Very interesting. Although what I hear from friends that have a couple of such properties - they were hit hard during last year. Because nobody wants to pay rent these days. In some cases they actually paid tenants to get out so they would sell the property.
Yep
BRRR makes way more sense than flipping.... From my experience in flipping a bunch of homes and several rentals.
Ken’s got the Best Videos and I am honored to be the first to comment as I am a hold and rent landlord
So much info on a 10 minute video!! 🙏🙏🙏 thank you!!
I think holding and renting is much safer and better for long term wealth.
Fix n flip is for people that only have enough cash to do one or two. Once you’ve got 7 figures to invest you’ve got to buy and hold
Great stuff as always ken!
Thanks for that that just makes so much sense
BRRRR its cold in here....
The brrrr strategy fulfills both of flipping and renting.
Is it better to pay off the property to generate 100% profit and use the profit for new projects OR to keep doing tax free cash out refinance and using it to buy more properties?
Do both if you can. Keep some homes paid off and refinance others you plan to keep for a long time. Loans are not cheap so if you plan to sell them in the next few years hold off.
Do you have any videos on flipping houses? I want to learn how to do that.
What about comparing the BR4 vs Wholesaling strategies for rentals?
Question: How many people living in their home that they purchased 10-20 years ago, could afford the same home? I was shocked by the answer. About 10 percent would be able to purchase their same home at the inflated price. The next question, how many would purchase the same home with the inflated price and higher property tax bill? thoughts?
Thank you so much 👍🙏🙌
Rental properties IMO 🚀
Use money from flipping, wholesaling and "quick" cash real estate strategies to invest in multifamily real estate for cashflow and wealth building.
Thanks once again for gems of knowledge🙏
When I refinance my 4 plex in Mesa Az ima buy ur infinite shirt! I double my rents in 5 months of owning the place.
This is a great strategy, especially now while interest rates are so low and real estate prices going up at crazy speeds, it should be a goal of any investor to buy as many properties as possible
Great info. Thanks.
great content!
Excellent breakdown.
Great advice
Our CPA's insist that flipping is a business, so SE taxes + ordinary taxes are way more than Cap Gains taxes...hold/rent strategy makes more sense
The cash on a cash out refi still has interest on it. Even though it's tax free, you are still paying interest. Wouldnt that be a wash? Either way (flip or cash out refi) you are still paying something correct or am I missing something???? Thank you
no because the interest is covered by your cashflow!! would you rather get 500 extra per month in cash flow, or get 500 less but have a second property? the second property will make more than the 500 in cash flow you lost. forget about interest, thats being paid by your hopefully good tenants
It’s all paid by tenant
You need more cash to rehab and rent?
Can't find a bank to loan on the rental houses
I'll be flipping to move into renting
So you’re saying I should become a broker or a property manager?
*If you keeps waiting on the right time, you may not get it . Start investing that little you have. The rich got rich by spending less and taking calculated risks that brought them huge returns. Procatinating kills , do it now don't wait until other's succeeds. I started Investing at 28 and now I have made a six figure portfolio, have my own house and touring around the world with my family. Saving is good,but Investing is way better*
Im going right
🎖
cool
flips most of them are quick cheap unpermited tasteless poor workmanship flip and run... flippers lot of homes cant get a loan cash only lot of us dont want or have time do it your self flippers are so cheap is they cant put in a fridge its $800-$1000 ask your agt for the listing history see what it was like before have them show you the agt report buyer beware
they work for me I dont have to work any more as for buying one can buy as primary resident stay at least 2 yrs or more sale no cap gains you do it every 2 yrs up to $250k each tax payer have some good points rentals about re fi cash out can build buy more units pay off a property or just keep it for rainy day
Excellent explanation! Thank you!