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 that has great potential, but investors must be fully informed. They should know that the profit from a single flip may come after many months or even years.
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. South Roanoke rental properties are stable opportunities that have superior long-term growth than most stocks or other retirement products. In the long run, the benefits of rental products are better.
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 South Roanoke, but that’s not always the case. It’s quite common to encounter some problems or delays, and it can get discouraging.
As a case in point, 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 any other 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, a lot of work would be involved for even a best-case scenario flip. The time involved in flipping a house can be extensive. The process is long, starting from finding the property to set up the financing, closing, and remodeling. Then when all that is done, you can finally have the property listed for sale. Throughout this 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. Some investors, however, are able to take on multiple house flips in a single year. They have no choice but to do this if they want a substantial and steady income stream. But more often, houses are flipped one at a time, making it difficult to anticipate the duration of waiting before that investment will ultimately turn a profit.
Because of this circumstance, house flippers will greatly benefit from having more than one revenue stream. The real estate industry offers many opportunities but, by far, the one that gives the most consistent income opportunities are residential rental properties. The process of flipping houses and the process of buying and renovating rental homes are very similar, but there are some undeniable 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 Colonial, they get expert market assessments on all prospective and current rental properties in South Roanoke, 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 specialists then finds quality tenants to fill the vacancies in order to deliver stable rental income to the investors. They can then use the free time to focus on more important things.
With all these positive effects, it is quite evident 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 RPM Colonial can make the experience of owning rental properties one of the easiest real estate investments you’ve ever made, giving you time to pursue your other favorite aspects of real estate business. Feel free to contact us online or by phone at 540-595-7411. We’ll be glad to answer any of your questions.
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