Yellow Star Properties

Cash Flow versus Cash Now - Who Wins?

by Fortune Builders

What’s better, real estate investing for lump sums of cash now or relying on cash flow?
It’s the big debate of two different schools of real estate. Building a portfolio of rental properties for cash flow and flipping houses for fast cash now. Which is the smarter real estate investing strategy?
Of course there are pros to both but ultimately what is right for you comes down to your personal goals and needs as well as where you are starting from. If you already have millions in the bank and just need somewhere profitable to park it, somewhere that will produce consistent income to provide for you in retirement then go the rental route by all means.
However, those who need to build up their nest eggs, anticipate the need for large amounts of cash in the coming years or who need to make up for lost savings on other investments then flipping houses for cash now definitely rules.
Rentals are great but if you are leveraging them let’s be honest it is going to take quite a while for a few hundred a month from a property to satisfy your needs and appreciation is never guaranteed. Plus should any of the worst case scenarios happen, your cash flow stalls and you are over-leveraged you could lose everything.
Flipping houses for fast cash means zero speculation, less risk and capitalizing on the time value of money. Of course once you have built up quite a healthy pot of cash you are going to need to put most of it to work for you somewhere and your local bank certainly isn’t as safe as it may have been once upon a time.
So yes, work towards diversifying into some prime rental properties which can be paid off. However, you can also work on building a real estate investing business. A turnkey business model which can run on autopilot providing you with income from flipping houses and rental properties while building its own equity and value which can be cashed in on later too.

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