Flipping houses is an excellent alternative to generate income; however, one of the limitations that come with this venture is that the income earned from house flipping is irregular at best. Flipping houses is a high-risk investment strategy that comes with great potential but also with potential drawbacks. Investors could wait for a substantial length of time, ranging from months to years to observe a profit from an individual flip. To lessen these risks and provide a more consistent income stream, why not add one or more rental homes to your flips? Rental properties are one of the most stable investment opportunities available, providing investors with long-term growth rarely matched by stocks or other retirement products.
The popularity of reality television about house flipping has generated some sort of an unrealistic perspective on just what flipping houses involves. While it is attainable to purchase, remodel, and re-sell a residential property quickly and profitably, often there are situations that require great efforts or unexpected obstacles that must be resolved along the way.
For instance, houses that are under construction are usually the ones that are targeted by thieves and vandals, more so than the other properties, crimes that could bring about costly losses. Bad weather, burst pipes, and any number of other unforeseen events could give rise to expensive repairs that were not part of the original budget. Therefore, house flippers need to be acquainted with reliable solutions for things will not always go according to plan, and it helps to be prepared for when things go wrong.
When dealing with flipping houses, there’s no such thing as easy and fast for even the best-case scenario flip takes a lot of time to finish. The period dedicated to flipping a house can be comprehensive, from locating a property to arranging financing, closing, remodeling, and finally listing the property for sale. During this entire time – however long it could likely take – the property is not generating an income considering the only profit an investor realizes from a flip comes after the property has sold. Some investors can manage multiple house flips in a single year, hoping to create more frequency and consistency of income. But more often, houses are flipped one at a time, making it tricky to forecast when that investment will ultimately pay off.
For this cause, house flippers will greatly benefit from having more than one revenue stream. There are many opportunities in the real estate industry, but the one that presents the most reliable income opportunities are residential rental properties. Buying and renovating rental homes is a process very similar to flipping houses, but there are a few distinct advantages. When buying a home to use as a rental, investors can enlist the help of a quality property management company to do a lot of the heavy lifting for them.
When property owners select Real Property Management Legacy, they acquire expert market assessments on every prospective and current rental properties, warranting that investors have trustworthy information on rental rates, market value, and so on. We also offer access to dependable home remodeling and repair experts, ensuring that any work done on the property is done well and correctly the first time. Finally, we market the property and lease it to quality tenants, providing investors with consistent rental income while they seek other real estate activities.
When all of these advantages are added together, it is clear 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 Real Property Management Legacy can make owning Papillion rental properties one of the most straightforward real estate investments you’ve ever made, freeing up your time to pursue other aspects of your real estate business. For more information, contact us online or call us at 402-905-0459.
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