There are certain situations in which flipping and holding have their advantages. If you aren’t aware what these definitions mean, flipping means quickly selling off a property rather than keeping them for the long haul while holding, quite literally, means holding on to be sold much later if at all.
However, the question that every realtor has is when either of these strategies should be applied.
Since flipping will ensure that you get paid for your investment immediately, the advantage of holding properties means that you will be building wealth in the long run since properties in the United States appreciate at a greater rate compared to the rate of inflation.
So, the question you should be asking yourself is which strategy should be used for which situation rather than which strategy is better than the other.
Of course, the answer to that question depends on what you consider to be important. Here are some questions that will help you ascertain that:
#1: Is additional income a necessity now or in the near future?
#2: Am I in a high-income bracket right now which would be negatively affected by more income?
#3: Does the local real estate offer me both the advantage of getting bargains and high rents that should cover my expenses if I want to hold on to the properties?
#4: Is the local real market rising or falling at this time?
#5: How does the prospect of bringing in short-term income fit in with my short-term and long-term financial goals at the moment?