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The Problem with Smithfield House Flipping

A Couple Renovating a Kitchen in their Smithfield Rental PropertyFlipping houses is another excellent idea to generate income, but with the profit also comes the reality that the income earned from house flipping is erratic at best. Flipping houses is a high-risk investment strategy with a budding potential but it also comes with plausible downsides. The turn around time for investors could last up to months of waiting to even years to see a single flip start to earn a profit. To conquer these risks and generate a more consistent income stream, try to include one or more rental homes to your flips. Rental properties are one of the most stable investment opportunities in the market, providing investors with long-term growth rarely matched by stocks or other retirement products.

The popularity of reality television about house flipping has given the impression of an unrealistic perspective on precisely what flipping houses would take. Even though it is possible to purchase, remodel, and re-sell a residential property quickly and profitably, the truth is that there are difficulties or unanticipated obstacles that must be overcome along the way.

Say for instance those houses that are under construction; they are usually targeted by thieves and vandals more as compared to the other properties, crimes that could very well land you with a hefty price to pay in losses. Bad weather, burst pipes, and any number of other unforeseen events could result in costly upkeeps that were not covered in the original budget. For this reason, house flippers need to be ready not only for when things go according to plan but for the genuine likelihood that something will go awry.

When it comes to flipping houses, even the best-case scenario flip entails several months of work. The amount of time put in flipping a house can be long, from locating a property to arranging financing, closing, remodeling, and finally listing the property for sale. During this whole period—no matter how long it would be—the property is not generating an income, this is because the sole profit an investor realizes from a flip comes after the property has sold. Some investors can manage multiple house flips in a single year, with the intent of creating more frequency and consistency of income. However, that may not always happen as houses are flipped one at a time, making it trivial and tough to project when that investment will ultimately pay off.

It is because of this reason that house flippers will greatly benefit from having more than one revenue stream. There are many opportunities in the real estate industry, but the standard option that offers the most constant income opportunities are residential rental properties. Buying and renovating rental homes is a procedure very comparable to flipping houses, but there are a few distinct 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 choose Real Property Management Dominion, they obtain expert market assessments on all prospective and current rental properties, warranting that investors have reliable data on rental rates, market value, and so on. We also extend access to dependable home remodeling and repair experts, assuring that all work done on the property is fulfilled well and precisely the first time. Lastly, we market the property and lease it to quality tenants, providing investors with consistent rental income while they seek 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 Dominion can make owning Smithfield 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 757-395-4274.

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.

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