Flipper Vs Landlord
Real Estate has been an excellent investment over the last few years in Canada. It really is no surprise that Canada has the largest percentage of multi-home owners in the world. There are several ways to invest in real estate, two of the most common being:
1. To buy a home with the purpose of renting it out
2. To purchase a home with the intention of flipping it
When determining which is best for you there are several factors to look at such as; your availability, skills, access to funds, and risk level.
The advantage of the rental market is it requires less upfront capital, it is not as time-consuming, requires less hands-on skills, and is a fairly low-risk investment.
The negative is it is a more long-term strategy and if you pick the wrong tenants it can be a nightmare. Click here for some tips on choosing the right tenant!
The advantage of flipping a house that you can realize your profit within less than a year and if done correctly the profit can be significant.
The disadvantage is it requires not only the upfront capital to purchase the property but also the funds to renovate and carry the home until you resell it.
Flipping is a much more hands-on investment and it is a skill set to be able to look at the house and know how, as well as, what to renovate to make a profit. It really helps if you are handy or well connected with trades. The risk level of flipping is much higher, but can also be much more rewarding. Not to mention that transforming a house can be a really fun experience.
We have two video series to help you make an informed decision of what is right for you.