Flipping houses can be a big way to generate income, but one of the realities is that the income earned from house flipping is unstable at best. Flipping houses is a high-risk investment strategy with great promise but with lots of peril involved. Investors could wait for months or even years to see any income from a single flip. To lessen this likelihood and accommodate for a more consistent income stream, why not supplement your flips with one or more rental homes? Rental properties are one of the most stable investment prospects feasible, providing investors with long-term growth rarely matched by stocks or other retirement products.
The popularity of reality television about house flipping has made something of an unrealistic perspective on precisely what flipping houses involves. Despite the fact that it is easy to purchase, remodel, and re-sell a residential property quickly and profitably, generally, there are problems or unforeseen impediments that have to be overcome along the way.
Sometimes houses that are under construction are mainly targeted by thieves and vandals more than other properties, crimes that could bring on expensive repairs. Bad weather, burst pipes, and any number of other unforeseen events could produce extravagant renovations that were not included in the original budget. Due to this, house flippers have to be poised not only for when circumstances succeed but for the very existent likelihood that something will break down.
As regards to flipping houses, even a best-case scenario flip encompasses many months of endeavor. The duration engaged in flipping a house can be vast, from locating a property to arranging financing, closing, remodeling, and finally listing the property for sale. During this entire period – regardless of how long it may last – the property is not generating an income, since the only gain an investor realizes from a flip comes after the property has been sold. Some investors are capable of managing multiple house flips in a single year, desiring to make a more frequent and consistent source of income. But more often than not, houses are flipped one at a time, making it excruciating to foresee when that investment will ultimately pay off.
Subsequently, 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 suggests the most secure income opportunities are residential rental properties. Buying and renovating rental homes is a mechanism very much the same to flipping houses, but there are certain evident benefits. 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 landlords appoint Real Property Management Heritage, they obtain expert market assessments on the whole perspective and current rental properties, confirming that stakeholders have the correct knowledge on rental rates, market value, and so on. We also extend access to dependable home remodeling and repair experts, confirming that any duty done on the property is finished well and appropriately the first time. Ultimately, we market the property and lease it to quality tenants, giving investors consistent rental income while they accomplish other real estate activities.
When all of these assets are integrated as a whole, it is understandable that hiring a property management company is not so much of an added cost as it is a valuable asset on your real estate team. The professionals at Real Property Management Heritage can make holding Timbergrove rental properties one of the quickest real estate investments you’ve ever built, loosening up your time to manage other sides of your real estate business. For more information, contact us online or call us at 832-708-8157.
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