Those looking to invest in real estate often wonder whether it is more lucrative to buy property and hold it, rent it or flip it. The answer is — it depends on the market. According to Holly Broiles with Sher-Den Realty the current local market is considered a seller’s market.

“If you can sell it, sell it,” Broiles said. “Don’t hold onto your properties right now. We don’t know when we will get prices like this for homes again. Renting is always a good idea but the rental market is entering into the slowest part of the year. From the end of August until the end of January people tend not to move.”

Tanner Barclay with Easy Life Realty said the investors he works with have found the most success with renting properties locally.

“I feel like this area is better for renting than flipping,” Barclay said. “Our price point is not terribly high right now but with the market being good it’s difficult to buy with enough meat on the bone to do a flip. As a general rule, I lean more towards buying for rental purpose.”

Barclay said there is a need for rental properties in the area. He explained the increase in price for many homes has caused what would have been buyers to become renters.

“The prices jumped so quickly around here that it priced out local people and they resorted to renting,” Barclay said. “I tell people the easiest part about investing in a rental is leasing the property. The hardest part is lining up contractors and getting the work done.”

The increase in sales price for homes in the area may also be contributing to the need for rental homes in a different way. Broiles said many investors who purchased homes eight years ago and have been renting them are now selling them.

“They don’t know when they are going to get these prices again,” Broiles said. “I wouldn’t buy anything right now to hold because you might find lower price down the road. But if you already own a property now is the time to sell it.”

As investors sell off their rental portfolio, the number of available rental homes continues to decrease and the demand continues to rise. Beyond the need for rental homes, Barclay explained the cost of building is also a reason to avoid flipping.

“With all of the building going on in Collin County there’s just not enough people to fill the shoes,” Barclay said. “With the hurricane down south, the labor shortage is only going to get worse. Building materials will probably go through the roof. As far as rental properties, this is a great area for that.”