Flipping houses can be an excellent alternative to generate income; however, one of the certainties is that the income earned from house flipping is erratic at best. Flipping houses is a high-risk investment strategy with real potential but several inherent pitfalls. Investors could wait for a long time some even lasting years before they begin to see a profit from a particular flip. To alleviate these risks and deliver 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 options possible, providing investors with long-term growth rarely matched by stocks or other retirement products.
The popularity of reality television about house flipping has conceived something of an unrealistic perspective on precisely what flipping houses necessitates. While it is feasible to purchase, remodel, and re-sell a residential property quickly and profitably, often there are complications or unanticipated impediments that must be overcome along the way.
For instance, houses that are under construction are prone to crimes because they are regularly targeted by thieves and vandals more as compared to other properties, therefore resulting in unwanted expenses. Bad weather, burst pipes, and any number of other unforeseen events could end in costly repairs that were not covered in the original budget. For this reason, house flippers need to be ready not only for when things work out fine but for the substantial likelihood that something will go wrong.
When it comes to flipping houses, despite a best-case scenario flip, it would still take several months of effort. The time dedicated to flipping a house can be thorough, from locating a property to arranging financing, closing, remodeling, and finally listing the property for sale. Throughout this whole period – however long it may take – the property is not generating an income because 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, wishing to generate more frequency and consistency of income. But more often, houses are flipped one at a time, making it tricky to predict when that investment will ultimately pay off.
For this reason, 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 contributes the most steady income opportunities are residential rental properties. Buying and renovating rental homes is a process very comparable to flipping houses, but there are several specific benefits. 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 the professionals at Real Property Management Chicago Edge, in turn, they get expert market assessments on all prospective and current rental properties, ensuring that investors have the right information on rental rates, market value, and so on. We also give access to dependable home remodeling and repair experts, ensuring that any work done on the property is done accordingly and correctly the first time. Finally, we market the property and lease it to quality tenants, providing investors with consistent rental income while they pursue 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 Chicago Edge can make owning Evanston 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 773-904-7700.
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