Flipping houses can be a profitable way to make money, but it’s important to remember that the income from flipping isn’t steady. Flipping homes is a high-risk investment strategy that offers strong potential but comes with many difficulties. Investors may be waiting for months, sometimes even years, before they see earnings from one house flip.
To reduce these risks and create a more stable income stream, consider owning one or two rental properties alongside your flips. Rental properties are some of the most reliable investments, delivering long-term growth that few stocks or retirement products can match.
Is house flipping worth the risk?
The surge in reality TV shows about flipping houses has shaped an unrealistic view of the realities involved in the process. Although it’s possible to buy, renovate, and sell a home quickly and for a profit, it’s important to recognize potential challenges and unforeseen hurdles.
Homes that are under construction are more prone to theft and vandalism than other properties, which can result in significant financial losses. Unfavorable weather, burst pipes, or other unexpected events can result in costly repairs that weren’t planned for in the original budget. This is why house flippers must be prepared for successful projects as well as the potential for unexpected problems.
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. During this time, no income is generated from the property, as the investor only earns a profit once the house sells.
Some investors are able to flip multiple houses in a year, hoping to generate more frequent and stable income. However, in most cases, houses are flipped one at a time, making it challenging to predict when the investment will pay off. For this reason, it’s crucial for house flippers to maintain multiple revenue streams. The real estate industry offers many opportunities, but residential rental properties provide the most stable income. The process of buying and renovating rental properties is similar to flipping houses, but it has a few key advantages. When buying a rental property, investors can seek the assistance of a reliable property management company. These companies oversee tasks such as tenant acquisition, rent collection, and maintenance, easing the investor’s workload and reducing stress.
The professionals at Real Property Management Quest can simplify owning rental properties in Irving, giving you more time to focus on other parts of your real estate business. For more information, contact us online or at 214-550-9311. We’re here to assist you in getting the most out of your real estate investments.
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