The good thing about flipping houses is that it is one of the ways to generate income. However, the reality is that the income earned from house flipping is not as stable as you’d hope it would be. Flipping houses is a high-risk investment strategy with huge potential but with numerous likely drawbacks. Investors would have to wait for a few months or sometimes even years to begin seeing a profit from an individual flip. To ease these risks 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 opportunities that are recognized in the industry that are providing investors with long-term growth rarely matched by stocks or other retirement products.
The popularity of reality television about house flipping has generated some sort of an unrealistic perspective on the reality of flipping houses. Even though it is possible to purchase, remodel, and re-sell a residential property quickly and profitably, things don’t always go according to what you intend, and there will always be an unprecedented circumstance that is out of your control, but you have to overcome as you go along.
The reality is that thieves and vandals usually target houses that are under construction as compared to the rest, crimes that will eventually cost you money. Bad weather, burst pipes, and any number of other unforeseen events may also end up in expensive renovations that are not planned as part of the original budget. Because of this, house flippers have to be ready and equipped to deal with situations with excellent outcomes but also for when things don’t go according to plan.
When talking about flipping houses, even a best-case scenario flip requires many months of work. The time allotted in flipping a house can be grueling, from spotting a property in the first place to arranging financing, closing, remodeling, and finally listing the property for sale. Throughout this whole time – no matter how 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 are able to manage multiple house flips in a single year, with the hopes of devising more frequency and consistency of income. But more often, houses are flipped one at a time, making it harder to foresee when that investment will ultimately pay off.
That’s why 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 could give the most consistent income opportunities are residential rental properties. Buying and renovating rental homes is a procedure that is very much alike to flipping houses, but there are a few noticeable 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 Acadia, they take expert market assessments on all prospective and current rental properties, warranting that investors have truthful information on rental rates, market value, and so on. We also offer access to dependable home remodeling and repair experts, ensuring that any work completed on the property is finished well and correctly the first time. Lastly, we market the property and lease it to quality tenants, giving investors with consistent rental income while they pursue other real estate activities.
When all of these advantages are factored together, it is clear that appointing a property management company is not actually an additional expense as it is a valuable asset on your real estate team. The professionals at Real Property Management Acadia can make owning Bar Harbor rental properties one of the most straightforward real estate investments you’ve ever made, liberating you from the hassle and giving you more time to pursue other aspects of your real estate business. For more information, contact us online or call us at 207-561-7482.
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