Flipping houses is a way to generate either active or passive income, but it isn’t the most reliable of methods since the income earned from house flipping is inconsistent at best. Flipping houses is a high-risk investment strategy with immense potential, but investors should be informed about the speed of its returns. They may have to wait a long time– months or years– to profit from a single flip.
To mitigate risk and ensure a more reliable income stream, have you tried purchasing one or more rental properties? This would be a good addition to your real estate resume. St. Cloud 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 entirely possible to purchase, remodel, and re-sell a residential property quickly and profitably in St. Cloud, but the odds don’t favor that. It’s very common to bump into obstacles and delays.
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 the reason why house flippers need to prepare and be educated when it comes to dealing with unexpected events— both good and bad ones.
When it comes to flipping houses, even a best-case scenario flip would take months of work. The time involved in flipping a house can be extensive, beginning with looking for the property, making arrangements for financing, closing the purchase, then remodeling the house. Only then can you start working on listing the property for sale. While all this is going on, 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. A few investors tackle multiple house flips in a single year as they try to get a substantial and steady income stream. But more often, houses are flipped one at a time, making it difficult to anticipate the waiting time before the investment will eventually pay off.
This being the case, 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 buying and renovating rental homes is comparable to flipping houses, but there are some definite advantages. As an example, when you buy a home to be used as a rental, investors can enlist the help of a quality property management company to do the grunt work for them.
When property owners work with a company like Real Property Management Freedom, they are given expert market assessments on all prospective and current rental properties in St. Cloud, 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 professionals then takes the property to market to find the best tenants so they can provide consistent rental income to the investors. The investors can then use the saved time on more important things.
When all the positive results are added up, it can be clearly seen 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 Freedom can make the process of owning rental properties one of the easiest real estate investments you’ve ever made. It would free up your schedule so you could pursue your other favorite things of the real estate business. Don’t hesitate to contact us online or give us a ring at 813-867-2667 to know more about what we can do for you.
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