Flipping houses can be a profitable way to make money, but it’s important to remember that the income from flipping isn’t steady. House flipping is a high-risk venture with great potential, though there are many obstacles to overcome. It can take investors months, or even years, to see profits from just one flip.
To lower these risks and establish a more reliable income, you could add one or two rental properties to complement your flips. Rental properties are considered one of the most dependable investments, providing long-term growth that is seldom matched by stocks or other retirement products.
Is house flipping worth the risk?
Reality television’s focus on house flipping has given many an unrealistic idea of what flipping properties really involves. Although flipping a home for profit can be done swiftly, it’s vital to understand potential difficulties or surprise issues that may arise.
Homes that are under construction are more prone to theft and vandalism than other properties, which can result in significant financial losses. Harsh weather, burst pipes, and other unforeseen events can cause expensive repairs that were not part of the initial budget plan. For this reason, house flippers need to be ready for both smooth projects and the possibility of unexpected setbacks.
The actual costs of house flipping
Even when things go perfectly, flipping a house still takes months of work. The time required for flipping a house is significant, from locating a property to securing financing, closing, renovating, and listing it for sale. Throughout this process, the property doesn’t generate income, as the investor profits only after the house is sold.
Some investors are able to handle multiple flips in a single year, aiming for more frequent and steady income. More commonly, houses are flipped individually, making it difficult to determine when the investment will finally pay off. That’s why it’s essential for house flippers to have multiple income streams. The real estate industry offers many opportunities, but residential rental properties provide the most stable income. Purchasing and renovating rental homes is much like house flipping, but with a few clear benefits. Investors who buy a home to rent out can work with a trusted property management company. They manage responsibilities like finding tenants, collecting rent, and handling maintenance, giving investors more time and less stress.
Real Property Management of the High Plains can make managing rental properties in Panhandle effortless, freeing up your time to focus on other areas of your real estate investments. For more information, contact us online or at 806-553-7914. We’re here to assist you in getting the most out of your real estate investments.
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.
