which area of real estate investing is more profitable: flipping, renting, or rent-to-own?

Answer 1

You have to define profitable. If you mean short term, then you want to be a flipper.

If you want long term, then you want renting.

When you flip, the money comes in as a chunk. It also stops coming in right then so you only make more money if you do another flip.

Renting has the money dribble in month after month for as long as you own it. Eventually you do and the money is all yours, minus expenses.

Rent to own/lease options are a good way to achieve both. You get a lump sum up front and you get steady income for a few years or whatever you option contract says. Again, once it the option is exercised, the flow stops, you get a chunk of change from the sale, and you have to then get another property.

If you want long term wealth, I would focus on rent to owns and traditional rentals.

If you want fast money...do flips.

NOTE: check with investors or an attorney about lease options. I'm in North Carolina, and they State is trying to basically kill the idea of buying "subject to", which is a big part of lease options. They will still allow it for those who have real estate licences or put up a quarter million dollar bond...so much for that idea if that happens!

Answer 2

2

Answer 3

Depends on so many factors - local market conditions, area, price, money down, cashflow, etc.

For example, people believe flipping is a cash cow, but I wouldn't go into any flip deal in a buyer's market unless I could afford the holding costs over a much longer term than anticipated.

%age-wise, what's more *profitable* and certainly much less risk than any of the above is bird-dogging - finding deals for flippers. It doesn't make a ton of money and you have to stomach the fact you get just a fraction (i.e. single-digit percentages, unless you're lucky) of someone else's profit, but for the price of a few stamps and 'phone calls it's extremely low-cost and low-risk, hence high return.

Answer 4

Flippers have more upward potential to make alot of money fast. Renting is less risky and more steady pay.

Answer 5

flipping makes money fast, but flipper's generaly do not have the respect of anyone in Property Managment. We treat them like scum.

Answer 6

When done with respect, knowledge and integrity, it would be the good old-fashioned "flip."

Answer 7

Rent-To-Own Home - http://RentToOwnHome.uzaev.com/?SoYW

Answer 8

depends how much you know about each. the more you know, increases
your chances, not to loose money.