I will flip during the next cycle. I will stick to my 3 year rule: Buy flipping properties only during the first 3 years of a cycle. Sell these properties by only holding 12 months. When everybody is getting excited, i.e., when I hear that some people in the real estate industries are organizing flipping teams to second tier cities, I will start to liquidate all flipping properties. Sound easy? It’s simply that easy. By that time, I hope more of my current holdings will turn into income machines so I just let them coast along.

After I criticized mistakes by those inexperienced flippers, I have to admit that flipping is sweet if you are fully prepared. I get lots of inspiration from a local flippers in my area. He always stick to his rule:

1) Never flip properties priced above 350K.
2) Never hold flipping properties beyond 12 months.
3) Always liquidate at later stage of housing boom.