Flipping houses can be an incredible method to generate income, yet one of the certainties is that the income earned from house flipping is unpredictable at best. Because flipping houses is a high-risk investment strategy, along with its great earning potential come with its drawbacks too. Investors could wait for a few months and some even years to start seeing a profit from a single flip. To ease these risks and produce a more consistent income stream, try including one or more rental homes to your flips. Rental properties are one of the most stable investment opportunities available, providing investors with long-term growth rarely matched by stocks or other retirement products.
The unrealistic perspective that is increasing nowadays can be correlated to the mounting popularity of reality television about house flipping; because of this, most people have incomplete details on what flipping houses necessitate. Even though it is possible to purchase, remodel, and re-sell a residential property quickly and profitably, the challenge arises whenever there are unforeseen hindrances that must be settled as soon as possible.
For instance, houses that are under construction are the ones that are usually targeted by thieves and vandals more than other properties are, crimes that could turn out to be costly losses. Bad weather, burst pipes, and any number of other unforeseen events could give rise to expensive upkeeps that were not part of the original budget. For this reason, house flippers ought to have a strategy not only for when things happen as expected but for the very real possibility that something will slip up.
When dealing with flipping houses, even a best-case scenario flip can take several months of work. The time that is invested in flipping a house can be extensive, from locating and deciding on a property to arranging financing, closing, remodeling, and finally listing the property for sale. All through this entire time – no matter long it may take – the property is not generating an income since the only profit an investor realizes from a flip comes after the property has sold. Some investors can manage multiple house flips in a single year, eager to produce more frequency and consistency of income. But more often, houses are flipped one at a time, making it hard to anticipate when that investment will ultimately pay off.
Consequently, 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 bids the most consistent income opportunities are residential rental properties. Buying and renovating rental homes is a process very comparable to flipping houses, but there are a few apparent advantages. 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 engage the services of Real Property Management Commonwealth, they obtain expert market assessments on all prospective and current rental properties, guaranteeing that investors have truthful data on rental rates, market value, and so on. We offer access to dependable home remodeling and repair experts as well, ensuring that any work done on the property is accomplished well and properly the first time. Finally, we market the property and lease it to quality tenants, providing investors with consistent rental income while they follow other real estate activities.
When all of these advantages are added together, it is clear 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 Real Property Management Commonwealth can make owning Boston rental properties one of the easiest 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 617-299-2342.
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