The good thing about flipping houses is that it is one of the ways to make income. However, the truth is that the income produced from house flipping is not as stable as you’d hope it would be. Flipping houses is a high-risk investment strategy with huge potential but numerous likely drawbacks. Investors would have to wait for a few months or sometimes even years to begin seeing a profit from an individual flip. To ease these risks and create 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 that are recognized in the industry that are providing investors with long-term growth rarely matched by stocks or other retirement products.
The impractical perspective on what it truly takes when one does flipping houses can be attributed to the popularity of reality television about house flipping. Even though it is possible to purchase, remodel, and re-sell a residential property quickly and profitably, more often than not, there are challenges and unforeseen obstacles that must be resolved along the way.
For instance, houses that are under construction are prone to crimes because they are regularly targeted by thieves and vandals compared to other properties, therefore resulting in unwanted expenses. Bad weather, burst pipes, and any number of other unforeseen events could end in costly repairs that were not covered in the original budget. For this reason, house flippers need to be ready not only for when things work out fine but for the substantial likelihood that something will go wrong.
When it comes to flipping houses, even the best-case scenario flip entails several months of work. The amount of time put in flipping a house can be long, from locating a property to arranging financing, closing, remodeling, and finally listing the property for sale. During this whole period—no matter how long it would be—the property is not generating an income, this is because the sole profit an investor realizes from a flip comes after the property has sold. Some investors can manage multiple house flips in a single year, with the intent of creating more frequency and consistency of income. However, that may not always happen as houses are flipped one at a time, making it trivial and tough to project when that investment will ultimately pay off.
That’s why 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 offers the most stable 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 Bozeman, 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 combined together, it is obvious 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 Bozeman can make owning Manhattan 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 406-586-2226.
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