I love to remodel. Is it worth borrowing money to invest in rental houses? What about flipping houses. Has anyone ever done anything like that? I have someone I think I might could partner with. If I got him to invest the money and me to invest the work, maybe we could split the profits. What kind of taxes am I looking to pay on this kind of project?

Lots of investors have flipped houses - but there are risks. For instance you can purchase a property that needs some help and factor in what you need to make it work and then determine what you could reasonably expect to sell the house for. A good flip can provide significant return, a bad flip can be a money pit. You might find that there are more problems than you expected and it might take longer than you wanted. In the end you might have a really nice house to sell, but the profits may be eaten up in product, labor and time.

I wil say though, some people have a great eye for this investment practice - so some of it may well bank on your experience.

I have a great eye, I just don't know if I want to borrow any money to try to make money. Maybe I'll wait until my father in law wins the lottery or I sell the next great American novel. Then I can use some of that money to start my flip and rental business

Its worth borrowing to invest in your FIRST rental house.
After that, you really should only borrow against your existing properties. Thats what you have to do anyway I think.

My dad was involved in rental properties (using his inheritance from Grandpa), but in the end he sold them all and made very little money after several years of headaches as landlord. Definate risk to giving this a go, but it can be done.

I think it depends. There are pluses and minuses. If you are goinbg to flip immediately --maybe. Otherwise you could get into landlord issues.

I've known too many people who got in trouble with renters so I've nixed that idea. My husband confessed that he doesn't like remodeling, so flipping is no longer a possiblity. I guess I'm back to saving pennies and using savings and eventually Cd's.

Sounds good that you've at least looked into it, though, and made an informed decision.

I'm currently renting, and my own loandlord is certainly looking to move away from the letting company that's managaing it - paying lots for little actual admin, in his eyes.

I was considering investing in rental properties. But I have a couple of friends that have rental properties. And all they ever seem to have is headaches. In fact one of them sold their rentals because of all the problems. So I really do not think I am going to.

Honestly, about the only way I'd go into rental properties would be if I had a management company to handle the renters/maintenance/etc.

I heard somewhere that owning homes is not as profitable as they may seem. In the past, they might have been. Even owning a home..after you’ve added up all the expenses, how much do you really make after selling it? I would rather rent to invest my money..then buy a house cash. That’s my plan anyway. THen I won’t be giving more to the bank than I think necessary through interest.

Right now with the real estate market somewhat unstable(in georgia at least) Its not the best thing right now. Too many people are selling and not enough are buying.

My dad used to be in the buisness as a side job but no longer does it becasues of the unstable market.

Otherwise it was a lot of fun and the first house he re-modeled was a success.

Goodluck!

I am also planning to go into rental business, sort of a dormitory near a school. But I am contemplating whether to continue with this project or to build a condominium with 4 units instead.

What can you suggest guys?

I'll go rental also, i can't see myself going the way

MY husband always wanted to flip a house. But I keep telling him I don't think it is a good time to do something like this. What do you think?