Should You Flip Houses or Own Rental Properties?

Should You Flip Houses or Own Rental Properties?

1 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

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YouTube
Instagram @beardybrandon
Open Door Capital

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Recently on the BiggerPockets Podcast, I was speaking to Thach Nguyen, an investor and agent located in Seattle. He had a powerful point about real estate investing he was determined to relay to others: “You’ve got to own real estate if you want to be wealthy.”

Related: The Single Best Strategy for New Investors

Think You Want to Flip Houses? First, Consider This

I asked Thach to elaborate, and here’s what he said.

After doing this now for 30-plus years, flipping houses—like selling real estate—means you’re on this treadmill, and you are running. The minute you get off the treadmill, you’re not making more income selling real estate anymore. Flipping houses is the exact same way. When you’re on the treadmill running, it’s fine. When that treadmill stops, then you’ve got no more money.

And let’s be honest, why are we flipping houses in the first place?

Everyone I know, they got into real estate—they all got inspired somewhere, somehow—because they want to own real estate sometime down the road, so you can actually live off a passive income. But they got caught up, in my opinion, basically comparing themselves to the Jones’.

“Well, Brandon flipped 20 houses. I’m gonna do 30!”

“David flipped 30. I’m going to do 50!”

And now, they’re in this rat race chasing who gets the most houses. But at the end of the day, 20 years down the road, they’ll realize, “Crap, I’ve got nothing to show for all my work, and I’ve got no passive income.”

So, they’ve got to keep running on the treadmill—even at 90 years old.

Related: Buy & Hold Real Estate is the Ultimate Investment: Here’s Why

I agree with Thach.

I can’t tell you the number of investors I’ve talked to who are major flippers, and they’ve been doing it for decades. And then, they realize, “Yeah, I’ve got to get myself some passive income. Because if I stop, I’m broke.”

Even if they are living great now, have a great car, a great life, a great house—as soon as the market crashes or, you know, something slows down, they’re almost immediately struggling.

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What do you think about flipping houses and about the sustainability of this investment strategy?

Weigh in with a comment below!