People our age have asked me “What is better to do, buy and hold or flip properties?”

How I respond depends on the lifestyle that my client wants to live. I listen carefully to their thoughts, fears, hopes and concerns. I also do my best to put myself in their shoes. Buying property is scary!! We are playing with your hard earned money when we invest. Having ‘big emotions’ is normal, even as an investor buying a 2nd property

Buy and hold property
Some clients want to build their portfolio, and add rental units or properties they can use as an AirBnb. Finding a good renter is a definite worry of some of my previous clients. As well as damage caused by day to day use or animals.

Or other times, they are thinking of their adult children – remembering when they, themselves were that age and how hard it was to pay for rent. Or they have adult kids, and want to teach them independence! Or maybe they need space away from their adult child!! Haha.

Buying and holding property means that you will earn equity, and perhaps a small income while you sleep. If you are renting it out, you will need to ensure you have enough to pay for the condo fees, utilities (if included in the rent), taxes and HOA fees. After that is all covered, the income you earn is less and accumulates over time.

The advantage to this is (unless you are letting someone reside there for free) you will be using someone else’s money to pay down the mortgage, and earning a small income each month. As well as building net worth and equity

Flip a property
Some of my clients have wanted to buy a very reasonably priced home, repair/renovate, and sell at a much higher price. The advantage to this approach is that you earn a larger ‘chunk’ of money once the home sells.

Over the past year, what I have seen in Edmonton and surrounding areas is very fast paced buying and selling. As well as low inventory. As a result of this, homes were not selling at reduced prices and being flipped for profit. Homes were selling at top dollar – at asking price or above in most cases.

This approach truly depends on the time of year and the market we are in at the time.

What I recommend? If you can find a home that has potential to be made into 2 separate suites, investors looking to rent out a home will buy a fully renovated home at top dollar. Especially if there is a main floor bedroom/bathroom
The area that you purchase in is also critical!! Some areas in Edmonton and surrounding areas did not appreciate in value as much as other areas.
Also creating a legal suite by following the city bylaws and code requirements will rent faster, and remain rented longer than suites that are not legally conforming to your municipality requirements.

Have fun with your investing adventure!!