Flipping houses is one way to generate either active or passive income, but what makes it less than ideal is that the income earned from house flipping is quite 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, think about adding a few (or even just one) rental properties to your rental resume. Newington 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 is totally possible to purchase, remodel, and re-sell a residential property quickly and profitably in Newington, but it’s also very common to encounter issues and setbacks.
For example, units 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 a combination of unforeseen events 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, even a best-case scenario flip would require a good number of months of work. 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 all these tasks are being completed, 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 period of time when that investment would eventually turn a profit.
Because of this circumstance, 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 example, when acquiring a house to use as a rental, investors can enlist the help of a quality property management company to do the heavy work for them.
When property owners use the services of a company like Real Property Management Hartford Metro/Greater New London, they get expert market assessments on all prospective and current rental properties in Newington, ensuring that investors have accurate information on rental rates, market value, and so on. Real Property Management can also connect you with dependable home remodeling and repair experts, assuring you that all the work done on the property will be done properly 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.
With a cumulative impact this great, it is unmistakable that employing 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 Hartford Metro/Greater New London 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. Feel free to contact us online or by phone at 860-316-4388. We’ll be glad to answer any of your questions.
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