Flipping houses can be an excellent plan to generate income, and yet one of the realities is that the income earned from house flipping is unpredictable at best. Flipping houses is a high-risk investment strategy with enormous potential but it also comes with pitfalls. Investors may well wait for months or even years to observe a profit from a single flip. To alleviate these risks and generate a more consistent income stream at the same time, why not include 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 popularity of reality television about house flipping has forged some kind of an unrealistic perspective on what flipping houses truly necessitates. While it holds that you can still purchase, remodel, and re-sell a residential property quickly and profitably, more often than not, there are problems or unexpected predicaments that must be overcome along the way.
A clear example would be houses that are under construction—they tend to be targeted by thieves and vandals more frequently than other properties are, such crimes could result in costly losses. Bad weather, burst pipes, and any number of other unforeseen events could result in expensive repairs that were not counted in the original budget. For this reason, house flippers need to be ready not only for when things turn out well but for the very real possibility that something will go wrong.
When it comes to flipping houses, even a best-case scenario flip requires several months of effort. The amount of time it takes in flipping a house can be extensive, from spotting a property to arranging financing, closing, remodeling, and finally listing the property for sale. Throughout this whole time – no matter long it could take – the property is not generating an income, and this is because the only profit an investor realizes from a flip comes after the property has been sold. Some investors can manage multiple house flips in a single year, aspiring to generate more frequency and consistency of income. Nevertheless, what happens typically are that houses are flipped one at a time, making it tough to forecast when that investment will ultimately pay off.
Therefore, 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 confers the most steady income opportunities are residential rental properties. Buying and renovating rental homes is a process very much comparable to flipping houses, but there are a few clear 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 hire Real Property Management Anchor, they obtain expert market assessments on all prospective and current rental properties, guaranteeing that investors have accurate information on rental rates, market value, and so on. We also offer access to dependable home remodeling and repair experts, confirming that any work done on the property is finished 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 set off to find 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 Anchor can make owning McDonough rental properties one of the most straightforward 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 678-467-3039.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
