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Thinking about dipping your toes into real estate but not sure if it’s worth it for the short term? You’re not alone. With savings rates barely moving the needle and money market returns still uninspiring, investors are looking for new ways to put their cash to work — and real estate often comes up.
But is real estate actually a good short-term investment? And if so, what does “short term” even mean in this space?
Let’s break it down.
What’s Considered a “Short-Term” Real Estate Investment?
In the real estate investing world, short term typically refers to anything under 12 months. And when it comes to short-term strategies, the most common approach is the fix and flip – buying a property, rehabbing it, and selling it for a profit within a few months.
So, can you pull off a successful flip in a short amount of time?
Technically yes. But there are a lot of moving parts.
The Realistic Timeline: Why 90 to 180 Days is the Sweet Spot
Let’s say you’ve already done the hard part – you found the property and you’re ready to go.
Here’s what a standard flip timeline might look like:
- Day 1: You close on the property.
- Day 1-45: Light rehab (new kitchen, cosmetic updates, flooring, paint, etc.)
- Day 46-75: List the property, get an offer (optimistically on Day 1!), and start the buyer’s loan process.
- Day 76-90: The buyer closes.
Best-case scenario? You’re in and out in 90 days.
But if we’re being honest, things rarely go perfectly. Contractors are juggling multiple projects. Materials get delayed. Buyers change their minds. Title issues come up.
Realistic timeline? Closer to 6 months.
So… Is That Worth It?
Only you can answer that, but here are the questions to ask:
- How much are you making on the deal?
- What’s your risk tolerance?
- Are you trying to grow your cash position or build long-term wealth?
For many investors, flipping is a tool to increase cash quickly so they can reinvest into long-term holds. We’ve seen it used effectively by investors who want to do both: flip one, hold one. Flip again, hold again. This dual approach can grow your portfolio while also building your reserves.
Not Into Rehabs? There’s Another Way.
Let’s say you don’t want to deal with contractors or manage a project at all.
Private lending might be the better short-term play for you. It’s passive, and returns often hit the double digits – especially when you’re working with experienced investors who need funding for short-term flips.
This is where your money works while you sleep (or golf, or travel, or just chill).
Why Flipping Might Be the Right Move Before Holding
Here’s what some new investors are doing:
- Start with a flip to build up more capital.
- Roll that profit into a rental property using a DSCR loan or long-term product.
- Rinse and repeat.
If you’re only working with $30,000 in liquidity, one long-term rental might tie it all up. But if you flip first and profit $20K–$40K, now you’re working with $50K–$70K. That opens up options.
Short-Term Investing Is Doable – But It’s Not Effortless
We say this all the time: this isn’t Monopoly.
It’s not just a game. Real estate has real risks. Even a quick flip comes with challenges, and managing a rehab isn’t for everyone. But if you’re comfortable taking on a little risk and doing the work, it can absolutely be worth it.
If your goal is to grow your cash reserves, diversify your strategy, and get some reps under your belt, a short-term investment in real estate could be a smart move – just plan for 6 months, not 6 weeks.
Let’s Find the Right Path for You
Whether you’re sitting on $30K and wondering what to do with it, or you’ve got multiple projects in the pipeline and want to keep scaling, we’re here to help.
We’ll run the numbers, walk through the strategy, and make sure the deal fits your timeline and your goals – not just your gut feeling.
📞 Let’s talk about your short-term and long-term goals. Schedule a strategy call with LFG Lending today.