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Flipping Houses vs Renting out a Property: Which Is Better?

Flipping houses and renting out a property are two strategies in real estate that are often discussed. You're probably wondering which investment strategy you should go for. In this article, we're going to present the differences between flipping and renting so that you can make the best decision that will help you meet your goals.

Should You Flip Houses or Rent Them out Instead?

House Flipping

House flipping is basically buying a house and selling it for a profit. As one might assume, house flipping entails a lot of work at the beginning. You need to look for the best properties with the best prices. Making necessary renovations to improve the home also involves a lot of time and money. 

Here are the pros and cons of house flipping:


1. The faster you can flip a house, the quicker the return on investment.

2. You don't need to go through the process of finding the best tenants and dealing with vacancies from time to time. 

3. Purchasing a house will help you hone your negotiating skills and learn more about the world of real estate.


1. While you can make money flipping, the income is inconsistent.  

2. Unexpected expenses arise that will lower your profits such as mold issues, foundation problems, etc. 

3. Your property taxes might increase, and this will present as a problem if you haven't found a buyer yet. This can stress you out. 

Renting Out

Renting out a home is a choice that millions of Americans make because of the realization that there are more advantages to renting than selling. But like house flipping, renting also comes with advantages and disadvantages.


1. Many rental properties benefit from a steady, long-term income. 

2. You'll be able to deduct your insurance, maintenance costs, and interest on your mortgage on your property. 

3. Eventually, you'll be able to sell your rental property for a great profit on top of the rental income you've earned for years.

4. You can use your cash flow as a do-it-yourself landlord to supplement a retirement fund. 


1. The neighborhood can change over time, and it will affect your rent prices. It pays to do your research beforehand.

2. Not everyone is fit to become a landlord. To succeed as a landlord, you need certain skills such as organization and planning, communication, accounting, and market research.

Final Thoughts

The truth is that flipping and renting will help you gain profit depending on your specific goals. If you're looking for faster and larger returns, flipping is for you. Now that you know the pros and cons of each, hopefully, you have a good idea of which strategy to choose. 

In case you prefer renting out properties, here are some landlording guides that will increase your knowledge:

If you’re ready, make Landlord Prep your go-to resource for landlording education. Here, we offer a complete DIY landlording course to get you on the right track. Join our academy today. If you want, you can check out Flavia’s real estate investing webinar first!