House flipping has become such a normal method that purchasing rental property is nearly boring by comparison. The attraction of the flip is easily understood a high profile investment, artistic repairs or add-ons, driving the value up as high as possible but, the main thing, the glint of the immediate profit.
A flipped house pays for itself right away and also leaves enough of a surplus to make the investment have been worth it. There are even Television shows showing it! Why then, would an investor want to consider renting out instead of selling right away? There are many reasons.
First and foremost, there is no guarantee that a purchase will go forward immediately, especially at the center of an economic crisis. While there will normally be a market for quality properties that are a good value, more and more home seekers are trying to save money by renting which means the market is or will be inundated with prospective renters from the get go.
While it may be true that a flipped property covers its own expenses (with some left over) on the short term, it is also a fact that the correct rental home will pay for itself over and over in the future. Lastly, a sold property create a solid amount of cash where on the other hand a rented property generates a steady stream of rent over an extended period of time, offering a kind of solid income that even the most lucrative of house flipping careers cannot offer.
Deciding to invest in rental property requires study, some money and a long term commitment. An investor should be aware of the types of properties he can invest in (single homes, homes in condominiums or homes for more than one family) their respective good things and bad things (amount of direct attention they have to have, potential income they make) and also important the local and global real estate market (what areas are wanted right now, what is the average price of rent). Under the right circumstances and with the right person it can become a valuable and very long term source of income.
A flipped house pays for itself right away and also leaves enough of a surplus to make the investment have been worth it. There are even Television shows showing it! Why then, would an investor want to consider renting out instead of selling right away? There are many reasons.
First and foremost, there is no guarantee that a purchase will go forward immediately, especially at the center of an economic crisis. While there will normally be a market for quality properties that are a good value, more and more home seekers are trying to save money by renting which means the market is or will be inundated with prospective renters from the get go.
While it may be true that a flipped property covers its own expenses (with some left over) on the short term, it is also a fact that the correct rental home will pay for itself over and over in the future. Lastly, a sold property create a solid amount of cash where on the other hand a rented property generates a steady stream of rent over an extended period of time, offering a kind of solid income that even the most lucrative of house flipping careers cannot offer.
Deciding to invest in rental property requires study, some money and a long term commitment. An investor should be aware of the types of properties he can invest in (single homes, homes in condominiums or homes for more than one family) their respective good things and bad things (amount of direct attention they have to have, potential income they make) and also important the local and global real estate market (what areas are wanted right now, what is the average price of rent). Under the right circumstances and with the right person it can become a valuable and very long term source of income.
About the Author:
Jason Myers is a professional writer and he writes as a hobby about real estate investment. He's also interested in real estate financing.
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