Real estate investment: flipping pre-foreclosures (buying and selling) VS. buying regular properties to rent?

I have considered both and on one property, we rented and the other property we flipped and sold.

If you can handle -
People calling you all hours of the day and night with water troubles, broken AC, etc..
People calling you to tell you that they will be late on the rent.
Calling to ask if they can paint, fix, repair, etc..
Moving peoples junk out when they leave everything
Then a rental is great and it is a long term money maker

With a flipper you must consider
Capital gains taxes
The possibility that you will not sell (especially in this market)
The chance that you will overspend on the budget.

But with a flip, you will have a lot of money at one time with no future hassles. My husband definitely prefers the flip houses. He works full time and says that the rental property is a headache.

I am looking for another property to rent or flip, but I play it by ear.

I have done both and currently have three rentals. I have a manger take care of the rentals for 10% of the gross rents. I very rarely have to do anything regarding the properties and just get a check in the mail each month. So, if you’re going buy rentals but don’t want to manage then make sure you have enough in the positive cash flow to cover a property manager. It’s worth it.

Flipping was very lucrative in the past but it has become far more difficult of late due to the quickly declining market. I would guess it will be into next year before we see a bottoming of the market at which time rehabs and flip opportunities will be abundant. Personally I’m waiting out for now until I see a bottom or upward turn.
Good Luck!