Very few people are really prepared for what it takes to be a landlord and since most areas of the country are at the top of the bubble right now, both options may be risky.

How prepared is your client for either option?

My thoughts he should consult with his cpa or financial planner.

My thoughts are that this depends on the indiviual's finances and objectives. Secondly. this is not the kind of advice I would ever give a client... he needs to speak with his cpa, his financial advisor, etc.

Retired? Did he retire at 50, 60, 70, 80? Available time and investment maturity must be in sync.

Experience? Has he done any of these things before? Flipped or rented PROFITABLY. Or is he watching too much TV

Resources? Who does he have on his team when the wheels come off the wagon?

Alternatives? How about transaction funding or angel investing, Nonperforming notes or JV?

Temperament? IF this person is a control freak, goes ballistic whenever something unexpected  appears, be aware, should anything go wrong, you will be blamed.

Take great caution to not offer advise that comes with consequences, but you can suggest options. 

more information about him financially is needed....

Resale, as in flipping.  That's a tough thing to do, it isn't as easy as TV makes it look.  The payoff can be big and short term.

Rentals are nice, they have small payoffs but are over the long term.  I have several rentals and enjoy the financial freedom they give me.

Karen, I would only share options with him - I wouldn't want to be to blame if whatever he decides to do is the wrong option for him at his age, finanaical status, etc.  Tell him to seek counsel with a CPA - get yourself off of that hook!

I think there are positives and negatives for each, but personally, I would prefer resale if the numbers make sense.

There is so much more to this than the questions.  Retired?  What is their income, assets, goals for investment, etc.  There is not a blanket answer to this. One must get under the covers and look at the entire financial picture. 

depends on the reserves

I wouldn't advise this client as I don't know the financial situation. I would suggest he have a conversation with a CPA, or perhaps a financial advisor

A nice rental in a good area provides for good dividends

Karen,

I think he should talk to his financial advisor before deciding. A

It all depends on his long term goals.

This is a question for the client's financial advisor, or at very least requires a lot of analysis.

Ask him - At this point in life which one is more important - Cash Flow OR

Building NET Worth

IMO - depends on his life style and affordability

I would advise he buy a multi-plex - triplex or duplex - live in one rent out the other.

Or if he can afford it buy 2 units - 1 vacation condo for rental income and usage, and one unit (house, condo or townhouse) to live in

Too many variables unanswered to pursue a full answer!

It depends what is goal is. For profit now, buy, fix and sell, then repeat. For long term steady goals, buy a good clean rental. 

Sounds like he feels he is 'cash rich' at the moment. Your question doesn't make complete sense.

I would have to have a long talk about strategy and goals and create awareness on risks of fix and flip, and depending on his age the holding period for the rental.

Bob Crane nailed this one!

My thoughts are that this depends on the indiviual's finances and objectives.  

If he buys a rental property will he be managing it or hire a property manager?

He should talk to a cpa

I think a call to a financial planner would be in order.

Long term medical related real estate investments is my choice. Less stress, higher cash flow as well as long term appreciation and tax benefits.

Recommend what will best meet the needs of your client.

Karen Jones Lewis, MBA, Realtor - Ask your client to consult a financial advisor or a CPA. We just help people buy or sell homes! Simple.

Not everyone is cut out to be a landlord. It also depends if the client is satisfied with where he lives now. 

Need m ore info about the needs and such

 Send him to a CPA.  If he buys rental, refer him to a good property management company.

I'm with Richard Weeks ..we are not financial advisers and don't know what his Portfolio looks like..he needs to weigh his options considering what he stands to lose at this time of his life.

I think he/she should consider having a discussion with their financial planner for some long term strategy planning. That's what we do with our folks.

I was able to retire from a civil service job  because I have a rental that produces a positive cash flow.  In my community, rents are sky rocketing so it seems having a rental would be a continuous source of income that can go up annually.  

My recommendation would be rental.

Really can't answer that with just this information in hand.

Depends. Looks at the number and see what has more sense for his particular situation and time commitment. 

Has he dealt with a financial advisor to give him advice? So much depends on his age and his financial situation. 

want income rental.

Want to flip buy a small house first.

I am confused by the question, do you mean he is considering a buy and hold property to be a landlord or a fix and flip to try to make money? -Kasey

Being a landlord isn't my idea of a relaxing retirement. Choosing the latter with eyes wide open could keep me occupied and out of trouble much more easily. To each his own.

It depends on an analysis of his needs, requirements, goals and objectives and other matters.

Karen Jones Lewis, MBA, Realtor Is this client looking for a quick ROI or is the client look for an income stream. This should be the deciding factor.