Flipping houses may be a suitable method to generate either active or passive income, though it is an accepted reality that the income earned from house flipping is inconsistent at most. Flipping houses is a high-risk investment strategy with huge potential, nevertheless, it’s essential that investors take into consideration that they would have to wait months, or even years, to gain profit with a single flip.
To mitigate the risk and ensure a more reliable income stream, have you taken into consideration adding one or a few rental properties to your real estate resume? Bullhead rental properties are stable opportunities for investors that come with long-term growth scarcely matched by stocks or other retirement products.
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. Although it is actually feasible to purchase, remodel, and re-sell a residential property quickly and profitably in Bullhead, it’s rather common to meet surprising obstacles and problems.
For instance, houses 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, and plenty of different unplanned incidents could result in expensive repairs that were not included in your original budget. This is why house flippers have to be knowledgeable and attentive for both favorable and unfavorable situations.
When it comes to flipping houses, even a best-case scenario flip requires countless months of labor. The time involved in flipping a house can be extensive, starting with searching for a property to preparation for financing, closing, remodeling, and ultimately listing the property on the market. Throughout this entire time – however 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. A few investors are capable of looking after multiple houses flip in a single year, desiring to produce a substantial and steady income stream. But more often, houses are flipped one at a time, making it difficult to anticipate when that investment will bear fruit.
In this regard, house flippers will greatly benefit from having more than one revenue stream. There are many opportunities in the real estate industry, however, the one that contributes to the most stable income opportunities are residential rental properties. Purchasing and renovating rental homes is a procedure quite the same as flipping houses, however, there are some benefits. For example, when obtaining a home to utilize as a rental, investors can enlist the help of a quality property management company to execute some of the tough jobs for them.
When property owners employ a company such as Real Property Management Northern Arizona, they accept expert market assessments on all prospective and current rental properties in Bullhead, ensuring that investors have accurate information on rental rates, market value, and so on. Real Property Management moreover bestows ready access to dependable home remodeling and repair experts, making certain that whatever effort made on the property is accomplished properly and appropriately the first time. The crew of professionals subsequently market the property and fill up vacancies with prime tenants in such a way as to give investors a steady rental income while they use their time on more significant matters.
When all of these benefits are added up, it is very clear that appointing a property management company is not so much of an added expense as it is a valuable asset to your real estate team. The group of professionals at RPM Northern Arizona can make possessing rental properties some of the easiest real estate investments you’ve ever done, giving you more time to proceed and focus on the other elements of real estate business that require your attention. For more details, contact us online or call us at 928-757-7368.
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