Real estate investing can be viewed as a complex subject, but that's only because there are so many decisions to make. As an investor, you have a virtually unlimited infinite array of ways to make money. But that entails being able to make decisions. You have to choose the extent to which you will learn regarding each facet of real estate, who you want on your team, where to seek properties, whether or not a particular property is the right one for you—and on and on.

One question you will find yourself faced with is how you will use a piece of property after you have purchased it. You might not be the kind of real estate investor who wants to buy a piece of property and keep it in your possession it for a long time. You may not want to have to grapple with property managers and renters or to see to the upkeep of a piece of property. If these activities don't appeal to you in the slightest, the other option at your disposal is flipping.

Flipping a piece of property is simply selling it immediately after you buy it, perhaps even at the same closing. At the very latest, flippers generally begin the selling process the day of the closing. Some will even start the process prior to buying the property, though this is very risky business. However one goes about doing it, flipping inevitably entails hurrying to the auction block, as a vacant piece of property is always a liability.

However, if you hold a piece of property, you get the opportunity to raise that property's worth. If you manage to find a really good deal, the price you paid for it will probably be a drop in the bucket compared to what you stand to make off it. And when you do decide to sell it, you will be able to do so at your leisure and get a higher price than you would have by flipping.

This is true particularly if your piece of property is a multi-family residence like an apartment high-rise. If it is a good property in a good area, and you take care of it, occupancy is probably going to stay high. With a piece of property like that, your earnings tend to grow exponentially. If you manage your property well, this is almost assured.

On the topic of management, you will have to choose whether you will do that yourself or hire a management company to do it on your behalf. If you are the owner of an especially large piece of property, or if you have many pieces of property, you will need to employ a manager. Ken McElroy, author of The ABCs of Real Estate Investing, advises that you employ a property management company so that your time and effort will be used more efficiently elsewhere.

These are the sorts of things you will need to keep in mind as the owner of a property.

In the end, however, no matter whether you choose to flip a piece of property or hold it hinges mainly on how you would prefer to spend your time. Maybe you would enjoy the fast paced workday that flipping represents. Maybe this rush feels like an adventure to you. If this is the case, you should educate yourself on the proper way to flip properties (i.e., wait till you actually own a piece of property to arrange a sale and not to approach buyers at the very closing where you acquired a piece of property).

However, if the idea of maintaining a piece of real estate sounds like it would appeal to you, then buying and holding a property may be the way to go. Depending on your particular skill set, you may be able to find it more profitable to work one way as opposed to the other. It's completely your decision.