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The Problem with LaPorte House Flipping

A Couple Renovating a Kitchen in their LaPorte Rental PropertyThe good thing about flipping houses is that it is a practical approach to generating income. Be that as it may, but the truth is that the income earned from house flipping isn’t as steady as you would trust it to be. Flipping houses is a high-risk investment strategy with immense potential but many possible pitfalls. Investors would need to wait for a couple of months or in some cases, years to see a profit from a single flip. In an attempt to alleviate these risks and produce 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 available, providing investors with long-term growth rarely matched by stocks or other retirement products.

The popularity of reality television about house flipping has created a type of unrealistic perspective on precisely what flipping houses entails. Despite the fact that it is possible to purchase, remodel, and re-sell a residential property quickly and profitably, there will probably be difficulties or unexpected obstacles that must be overcome along the way, and you would need to have a strategy to overcome it.

For the most part, houses that are under construction are the ones usually targeted by thieves and vandals as compared with the other properties; these crimes could cost you money. Bad weather, burst pipes, and any number of other unforeseen events could result in expensive repairs that were not included in the original budget. Along these lines, house flippers must be prepared and ready to manage circumstances that are not only for incredible results but for when things don’t work out as expected.

When it comes to flipping houses, even a best-case scenario flip demands copious amounts of work. The time invested in flipping a house can be extensive, from locating a property to arranging financing, closing, remodeling, and finally listing the property for sale. Throughout this entire time – no matter long it could 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, with hopes of creating more frequency and consistency of income. But what usually happens is that houses are flipped one at a time, making it difficult to anticipate 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 offers the most stable income opportunities are residential rental properties. Buying and renovating rental homes is a process very similar 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 hire Real Property Management of the Rockies, they receive expert market assessments on all prospective and current rental properties, ensuring that investors have accurate information on rental rates, market value, and so on. We also offer access to dependable home remodeling and repair experts, ensuring that any work done on the property is done well and correctly the first time. Conclusively, we market the property and lease it to quality tenants, affording investors with consistent rental income while they direct their efforts at other real estate activities.

When all of these advantages are combined, it is evident 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 of the Rockies can make owning LaPorte 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 970-658-0410.

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