Moving Beyond House Flipping: Alternative Real Estate Investment Strategies in Today’s Market
Zillow’s Chief Economist Skylar Olsen asserts that house flipping is no longer an effective short-term investment strategy in the current market.
Olsen recommends three alternative approaches for real estate investors:
Buy, hold, and build equity: With high mortgage rates and elevated house prices, Olsen suggests adopting a buy-and-hold strategy. By holding onto properties and paying off mortgages, investors can build home equity and increase their profits when they eventually sell.
Become a landlord: With high demand for rental properties, becoming a landlord can generate monthly rent payments to cover mortgage expenses and other financial goals. As rental prices continue to rise, investors can accumulate cash flow over time.
Generate passive cash flow: For those who prefer not to deal with the responsibilities of being a landlord, investing in real estate investment trusts (REITs) or using online platforms to invest in properties can provide passive income without the need for hands-on property management.