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Inconsistent Income – The Problem with Housing Flipping in Sparks

Sparks House in the Midst of Remodeling ConstructionFlipping houses can be a good way to generate either active or passive income, but the truth is that income earned from house flipping is pretty inconsistent. Flipping houses is a high-risk investment strategy with immense potential, but investors should be informed about the speed of its returns. They may have to wait a long time– months or years– to profit from a single flip.

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. Sparks rental properties are stable opportunities that have superior long-term growth than most stocks or other retirement products. In the long run, the benefits of rental products are better.

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 isn’t unheard of to be able to purchase, remodel, and re-sell a residential property quickly and profitably in Sparks, but it’s not all the time that things go smoothly. There usually are some issues and delays that you’ll have to deal with.

As a case in point, homes 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 any other unforeseen events could result in expensive repairs that were not included in your original budget. Because of this situation, house flippers need to stand ready and informed so they can deal with these unexpected events.

When it comes to flipping houses, a lot of months of work would be involved for even a best-case scenario flip. The time involved in flipping a house can be extensive, beginning with looking for the property, making arrangements for financing, closing the purchase, then remodeling the house. Only then can you start working on listing the property for sale. Throughout this 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 the 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 the duration of waiting before that investment will ultimately turn a profit.

This being the case, house flippers will greatly benefit from having more than one revenue stream. The real estate industry offers many opportunities but, by far, the one that gives the most consistent income opportunities are residential rental properties. The process of flipping houses and the process of buying and renovating rental homes are very similar, but there are some undeniable advantages. For instance, when purchasing a house for use as a rental, investors can enlist the help of a quality property management company to do most of the heavy lifting for them.

When property owners employ a company like Real Property Management Corazon, they receive expert market assessments on all prospective and current rental properties in Sparks, ensuring that investors have accurate information on rental rates, market value, and many more. 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 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.

When all of these benefits are gathered together, it is obvious that using the services of 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 Corazon 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. Don’t hesitate to contact us online or give us a ring at 775-826-1414 to know more about what we can do for you.

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