House Flipping
House flipping is for people with significant experience in real estate valuation, marketing, and renovation. House flipping requires capital and the ability to do, or oversee, repairs as needed.
Airbnb and vacation rentals:
Income is generated by short-term leasing of a room or section of your home to guests.
Rental Properties
Earnings come from collecting rent from tenants, ideally exceeding the costs of mortgages, maintenance, and property management, resulting in a profit.
Pros
Provides regular income and properties can appreciate
Maximizes capital through leverage
Many tax-deductible associated expenses
Cons
- Managing tenants can be tedious
- Potentially damage property from tenants
- Reduced income from potential vacancies