Property investing can appear to be a difficult subject, however that's just because there are so many decisions to make. As an investor, you have an almost unlimited number of ways to profit. But that entails being able to make decisions. You must decide how much you will learn regarding each aspect of real estate, who you want on your team of experts, where to find properties, whether or not a particular property is a good one for you—and on and on.

One question you will find yourself faced with is how you will use a property once you have purchased it. You may not be the type of real estate investor who wants to buy a property and hold on to it for an extended period of time. You may not want to have to deal with renters and property managers or the maintenance of a piece of real estate. If you don't see these kinds of activities as appealing in the slightest, the other option at your disposal is flipping.

Flipping a property is simply the practice of selling it as soon as you purchase, often at the same closing. At the latest, flippers generally begin the selling process the day of the sale. Some even start the process prior to even buying the property, which is risky business. However one goes about doing it, flipping always involves a frantic rush to the auction block, because an empty property is always a liability.

However, when you hold a property, you are afforded the opportunity to increase that property's worth. If you manage to find a really good deal, the price you paid for the property will probably represent only a tiny fraction of the amount you stand to make off it, and when you do decide to go ahead and sell it, you will be able to do so at your leisure and get more than you would have by flipping.

This is true especially if the property is a multifamily residence such as an apartment high-rise. If it is a good property in a good area, and you maintain it, occupancy is probably going to stay up. With a property like that, your profit tends to increase exponentially. If you manage your property well, that is virtually certain.

Speaking of property management, you will have to decide whether you will perform that function yourself or hire a company to do that for you. If you are the owner of an especially sizable property, or if you have many pieces of property, you will probably have to employ a property manager. Ken McElroy, author of The ABCs of Real Estate Investing, suggests that you employ a property management company so your time and effort can be put to better use elsewhere.

These are the kinds of things you will have to consider as the owner of a property.

In the end, however, whether you decide to flip a property or hold on to it depends chiefly on what you'd rather spend your time doing. Maybe you would enjoy the fast paced workday that flipping represents. Perhaps the adrenaline rush sounds like an adventure to you. If this is the case, you should educate yourself on the right way to flip properties (i.e., wait until you own a property to arrange a sale and don't approach buyers at the very closing where you purchased a property).

However, if the concept of maintaining a property sounds like it would appeal to you, then buying and holding a property might be right for you. Depending on your particular skills and talents, you may find it more profitable to work in one way as opposed to the other. It is totally your decision.

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