Flipping houses is a way to generate either active or passive income, but it isn’t the most reliable of methods since the income earned from house flipping is inconsistent at best. Flipping houses is a high-risk investment strategy with immense potential, but investors should be informed about the speed of its returns. They may have to wait a long time– months or years– to profit from a single flip.
To mitigate risk and ensure a more reliable income stream, have you tried adding rental properties to your real estate resume? An additional one or two rental properties would go a long way to giving you a more consistent return on your investment. Holbrook rental properties are stable opportunities with growth that rivals or even surpass that of stocks or other retirement products. They are a lot better, especially if you’re planning for the future and going for long-term growth.
While the popularity of reality television about house flipping has increased, these reality TV shows have created something of an unrealistic perspective on exactly what flipping houses entails. It isn’t unheard of to be able to purchase, remodel, and re-sell a residential property quickly and profitably in Holbrook, but it’s not all the time that things go smoothly. There usually are some issues and delays that you’ll have to deal with.
For instance, houses that are under construction tend to be targeted by thieves and vandals, resulting in costly financial loss. On top of that, bad weather, burst pipes, or other events that were not anticipated could result in expensive repairs that were not included in your original budget. Because of this, house flippers need to be informed and prepared for these unanticipated events— both positive and negative.
When it comes to flipping houses, it would take many months of work, even for a best-case scenario flip. The time involved in flipping a house can be extensive. You’ll need to find the property, arrange for its financing, closing, remodeling, and finally have the property listed for sale. While you are doing all of these things, the entire time – however long it may take – the property is not generating any income, since the only profit an investor realizes from a flip comes after the property has sold. There are investors that manage to handle multiple house flips in a single year. They need to do this so they can have a substantial and steady income stream. But more often, houses are flipped one at a time, making it difficult to anticipate the waiting time before the investment will eventually pay off.
This being the case, house flippers will greatly benefit from having more than one revenue stream. Many opportunities can be found in the real estate industry, but when you’re after stability, then the income opportunities that residential rental properties give are typically better. Purchasing and renovating rental homes is actually quite similar to flipping houses, but there are a number of advantages. Case in point, when buying property to use as a rental, investors can enlist the help of a quality property management company to do much of the hard work for them.
When property owners engage the services of a company like Real Property Management Landmark, they are provided with expert market assessments on all prospective and current rental properties in Holbrook, ensuring that investors have accurate information on rental rates, market value, and so on. Real Property Management also gives access to dependable home remodeling and repair experts, making certain that all the work done on the property will be done correctly the first time. The team of experts then markets the home to fill vacancies with desirable tenants in order to present to the investors a consistent rental income. The investors can then spend their time focusing on more important things.
When all the positive results are added up, it can be clearly seen that hiring a property management company is not so much of an added expense as it is a valuable asset on your real estate team. The professionals at RPM Landmark can make taking part in the rental properties business one of the easiest real estate investment you’ve ever made. It will free up your time to do all the other things you like about the real estate business. If you are interested in learning more or have additional questions, please contact us online or by phone at 516-522-2859 today.
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