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Inconsistent Income – The Problem with Housing Flipping in Owings Mills

Owings Mills House in the Midst of Remodeling ConstructionFlipping houses is an excellent way to generate either active or passive income, but the fact is that income earned from house flipping is inconsistent at best. Flipping houses is a high-risk investment strategy that has great potential, but investors must be fully informed. They should know that the profit from a single flip may come after many months or even years.

To mitigate risk and ensure a more reliable income stream, have you tried adding rental properties to your real estate resume? An additional one or two rental properties would go a long way to giving you a more consistent return on your investment. Owings Mills rental properties are stable opportunities that give better long-term growth than stocks or other retirement products. They offer a lot more in the long run.

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. It is totally possible to purchase, remodel, and re-sell a residential property quickly and profitably in Owings Mills, but it’s also very common to encounter issues and setbacks.

For example, units 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, or a combination of unforeseen events could result in expensive repairs that were not included in your original budget. Because of this, house flippers need to be informed and prepared for these unanticipated events— both positive and negative.

When it comes to flipping houses, even a best-case scenario flip would need a lot of work. The time involved in flipping a house can be extensive. The process starts with searching for the best property, then securing financing, then closing the sale, then remodeling. After this, you can finally work on listing the property for sale. While you are doing all of these things, the entire time – however long it may take – the property is not generating any income, since the only profit an investor realizes from a flip comes after the property has sold. Some investors can handle multiple house flips in a single year in hopes that they generate a substantial and steady income stream. But more often, houses are flipped one at a time, making it difficult to anticipate how long that investment will finally turn a profit.

This is why house flippers will greatly benefit from having more than one revenue stream. Many opportunities can be found in the real estate industry, but when you’re after stability, then the income opportunities that residential rental properties give are typically better. Purchasing and renovating rental homes is actually quite similar to flipping houses, but there are a number of advantages. For example, when purchasing a home that you plan to use as a rental, investors can enlist the help of a quality property management company for much of the heavy labor.

When property owners use the services of a company like Real Property Management Essentials, they get expert market assessments on all prospective and current rental properties in Owings Mills, ensuring that investors have accurate information on rental rates, market value, and so on. Real Property Management can also present you with dependable home remodeling and repair experts, ensuring quality in the work done on the property. The team of specialists then takes the house to the market and finds great tenants to fill vacancies. This will ensure that investors get to enjoy a consistent rental income that would free up their time to focus on things that are more important.

With a cumulative impact this great, it is unmistakable that employing 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 RPM Essentials can make the experience of owning rental properties one of the easiest real estate investments you’ve ever made, giving you time to pursue your other favorite aspects of real estate business. Please contact us online or call us at 410-832-3138 to learn more about how we can serve you.

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