Flipping houses can be a good way to generate either active or passive income, but the truth is that income earned from house flipping is pretty inconsistent. Flipping houses is a high-risk investment strategy with large potential, but investors should know what they are getting into. They need to remember that they may have to wait for months or years before they get a profit from a 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? Live Oak 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 very possible to purchase, remodel, and re-sell a residential property quickly and profitably in Live Oak, but that’s not always the case. It’s quite common to encounter some problems or delays, and it can get discouraging.
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. This is why house flippers need to know and be ready for both positive and negative surprises.
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. 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. 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 how long the wait is before that investment will finally pay off.
Because of this, house flippers will greatly benefit from having more than one revenue stream. Many opportunities are available in the real estate industry, but when you’re in it for consistent and stable income opportunities, then the best bet would be to go with residential rental properties. Buying and renovating rental homes is a process that is much the same as flipping houses, but there are some unquestionable advantages. For instance, when purchasing a house for use as a rental, investors can enlist the help of a quality property management company to do most of the heavy lifting for them.
When property owners engage the services of a company like Real Property Management Alamo, they are provided with expert market assessments on all prospective and current rental properties in Live Oak, 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 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 of these benefits are gathered together, it is obvious that using the services of 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 Alamo 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. To know more about what we can do for you, please contact us online or give us a ring at 210-600-5672.
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