Flipping houses can be a smart approach to generating income, but one of the certainties is that the income earned from house flipping is irregular at best. Flipping houses is a high-risk investment strategy with likable flair but lots of difficulties. Investors could wait for months or even years to see proceeds from a single flip. To minimize these problems 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 methods achievable, providing investors with long-term growth rarely matched by stocks or other retirement products.
The popularity of reality television about house flipping has developed something of an unrealistic perspective on what flipping houses encompasses. While it is probable to purchase, remodel, and re-sell a residential property quickly and profitably, practically speaking, there are hardships or unplanned setbacks that will need to be addressed along the way.
For example, homes that are under construction usually are targeted by thieves and vandals more than other properties are, crimes that could result in pricey destruction. Bad weather, burst pipes, and any number of other unforeseen events could contribute to excessive repairs that may not have been included in the original budget. Consequently, house flippers need to be organized not only for when things prosper but for the very real probability that something will break down.
By means of flipping houses, even a best-case scenario flip contains many months of labor. The time engaged in flipping a house can be sizeable, from noticing a property to arranging financing, closing, remodeling, and finally listing the property for sale. During this entire period – however long it may take – the property is not generating an income since the only proceeds an investor realizes from a flip comes after the property has sold. Some investors are able to manage multiple house flips in a single year, wishing to have a more frequent and consistent income. But more habitually, houses are flipped one at a time, making it problematic to foresee when that investment will ultimately pay off.
For this reason, 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 deals with the most stable income opportunities are residential rental properties. Buying and renovating rental homes is a method very similar to flipping houses, but there are little blatant gains. 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 hire Real Property Management East Valley, they will get expert market assessments on all prospective and current rental properties, confirming that stockholders have the exact facts on rental rates, market value, and so on. We also provide industry contacts to dependable home remodeling and repair experts, ensuring that any effort done on the property is finished well and appropriately the first time. To conclude, we market the property and lease it to quality tenants, providing investors with consistent rental income while they pursue other real estate activities.
When all of these benefits are added together, it is clear that hiring a property management company is not so much of an extra overhead as it is a valuable asset on your real estate team. The professionals at Real Property Management East Valley can make keeping Gilbert rental properties one of the coolest 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 480-981-7000.
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