Flipping houses is a great way to generate either active or passive income, but the reality is that the income earned from house flipping is inconsistent– and that’s the best-case scenario. Flipping houses is a high-risk investment strategy with great potential, but it’s important that investors know that the profit doesn’t come instantly. Sometimes it would take months, or even years, for them to realize a profit from a single flip.
To mitigate risk and ensure a more reliable income stream, have you considered expanding your real estate resume by purchasing one or two rental properties? Baxter rental properties are stable opportunities that produce long-term growth that is rarely matched by stocks or other retirement products. They are a better opportunity, especially if you are looking for sustainable investment.
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 is technically possible to purchase, remodel, and re-sell a residential property quickly and profitably in Baxter, but that isn’t the usual scenario. Usually, there are setbacks and hindrances and it can be discouraging at times.
For example, properties 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, and other events that weren’t prepared for could result in expensive repairs that were not included in your original budget. This being the case, house flippers need to make preparations and learn to deal with these events that come unannounced.
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. First, you’ll need to find the right property, then arrange for financing and closing of the purchase. Then you can start remodeling the property and, when that’s done, list it for sale. During all this work, 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. Other investors work on multiple houses flips in a single year. They must do this to be able to generate a substantial and steady income stream. But more often, houses are flipped one at a time, making it difficult to anticipate how long the wait is before that investment will finally pay off.
This is why house flippers will greatly benefit from having more than one revenue stream. There are many opportunities available in the real estate industry, but when stability is what you’re after, the income opportunities offered by residential rental properties are generally better. The process of buying and renovating rental homes is comparable to flipping houses, but there are some definite advantages. For example, when purchasing a home that you plan to use as a rental, investors can enlist the help of a quality property management company to do much of the heavy labor for them.
When property owners take on a company like Real Property Management Deluxe, they are supplied with expert market assessments on all prospective and current rental properties in Baxter, ensuring that investors have accurate information on rental rates, market value, and so on. Real Property Management also provides access to dependable home remodeling and repair experts, making sure that any work performed on the property will be performed well and correctly the first time. The team of specialists then finds quality tenants to fill the vacancies in order to deliver stable rental income to the investors. They can then use the freed time to focus on more important things.
When all the beneficial effects are grouped together, it is plain to see 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 Deluxe can make the process of owning rental properties one of the easiest real estate investments you’ve ever made. It would free up your schedule so you could pursue other things in the real estate business. Please contact us online or call us at 218-454-7962 to learn more about how we can serve you.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.