Flipping houses is a great way to generate either active or passive income, but the reality is that the income earned from house flipping is inconsistent– and that’s the best-case scenario. Flipping houses is a high-risk investment strategy with great potential, but it’s important that investors know that the profit doesn’t come instantly. Sometimes it would take months, or even years, for them to realize a profit from a single flip.
To mitigate risk and ensure a more reliable income stream, have you entertained the idea of adding some rental properties to your real estate resume? Ellicott City rental properties are stable opportunities that have superior long-term growth compared to 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 isn’t unheard of to be able to purchase, remodel, and re-sell a residential property quickly and profitably in Ellicott City, but it’s not all the time that things go smoothly. There usually are some issues and delays that you’ll have to deal with.
For example, properties 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 fortuitous events could result in expensive repairs that were not included in your original budget. This being the case, house flippers need to make preparations and learn to deal with these events that come unannounced.
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. The process is long, starting from finding the property to setting up the financing, closing, and remodeling. Then when all that is done, you can 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. 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 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. You can find many opportunities in the real estate industry, but when it comes to the stability of the income opportunities, residential rental properties offer the best. The process of purchasing and renovating rental homes and the process of flipping houses are very much alike, but there are certain advantages. Case in point, when buying property to use as a rental, investors can enlist the help of a quality property management company to do much of the hard work for them.
When property owners employ a company like Real Property Management Metro, they receive expert market assessments on all prospective and current rental properties in Ellicott City, ensuring that investors have accurate information on rental rates, market value, and many more. Real Property Management can also provide you with access to dependable home remodeling and repair experts, guaranteeing you quality work on the property. The team of professionals then markets the property and rents it out to quality tenants so investors get to have consistent rental income while they use their time 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 Metro can make purchasing and managing rental properties one of the easiest real estate investments you’ve ever made. It would clear up your schedule so you could pursue other things you like in the real estate business. If you are interested in learning more or have additional questions, please contact us online or by phone at 410-290-3285 today.
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