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The Problem with Malvern House Flipping

A Couple Renovating a Kitchen in their Malvern Rental PropertyA lot of people agree that flipping houses is one excellent way to generate income, and other than the fact that the income earned from house flipping is inconsistent, there are also possible drawbacks that come with it; the reality is that it is a high-risk investment strategy with good potential. Investors would have to wait for a considerable amount of time that could last months or even years before they start to see a profit from a single flip. To alleviate these risks and generate 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 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 something of an unrealistic perspective on precisely what flipping houses entails. While it is possible to purchase, remodel, and re-sell a residential property quickly and profitably, usually there are challenges or unanticipated hindrances that must be dealt with along the way.

To be more specific, take houses that are under construction—they tend to be targeted by thieves and vandals over other properties and these crimes could bring about costly losses. Bad weather, burst pipes, and any number of other unforeseen events could result in expensive repairs that were not counted in the original budget. That’s why house flippers need to be ready not only for when things go well but for the very real likelihood that something will go wrong.

When it comes to flipping houses, even a best-case scenario flip comprises several months of work. The period involved in flipping a house can be long, from the initial stage of locating a property to arranging financing, closing, remodeling, and finally listing the property for sale. During this entire time – however long it may take – the property is not generating an income, since the only profit an investor realizes from a flip comes after the property has sold. There are investors who can manage multiple house flips in a single year, intending to create more frequency and consistency of income. But more often, houses are flipped one at a time, making it hard 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 offers the most stable income opportunities are residential rental properties. Buying and renovating rental homes is a progression that is very similar to flipping houses, but there are a number of apparent 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 choose Real Property Management Hometown, they gain expert market assessments on each prospective and current rental properties, assuring that investors have valid 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 completed well and appropriately the first time. Lastly, 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 extra expense as it is a valuable asset on your real estate team. The professionals at Real Property Management Hometown can make owning Malvern 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 501-701-4702.

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