Isn’t flipping houses more profitable than rental properties?

Good question.

No, flipping houses might be more profitable in some cases in the short term but over time keeping a larger rental property collection outperforms flipping houses.

Let’s say you flip 4 hours per year and succeed in making 50,000 on each flip so you end up after a year of hard work earning $200,000.

Now let’s say you have a 10,000,000 portfolio of rental properties that increase in value by 10% producing 1,000,000. The larger the portfolio (assuming you can maintain positive cash flow), the more clear that landlords grow rich in their sleep.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com