Flipping houses – buying a home for below-market value, quickly repairing or renovating the interior and exterior, and then putting them on the market for staggering profit – is something that television and infomercials has made look easy.
We’d all like to be the kind of high-flying real estate tycoons that can pluck up downtrodden properties and turn them into jewels that sell for 20-50% ROI, but in reality, flipping houses is significantly harder than it appears on television.
And with today’s recovering real estate market, a lot of people have gotten in on the game, making the house flipping arena extraordinarily competitive.
Now, the best deals go quickly and even solid properties with house-flipping potential are becoming harder to find. You also need substantial cash reserves to get into the business if you don’t plan on taking out mortgages – and as the article above discusses, you then have to deal with prepayment penalties for mortgages and the prospect of paying off loans with interest on homes you can’t flip.
Fortunately, there are other ways to profit from the real estate market that don’t entail the crazy world of high-stakes house flipping.
Turn Your Properties into Rental Properties
Demand for house rentals has been higher over the past few years than ever before. Each home that you turn into a rental house can turn into a steady stream of income from your tenants that not only delivers profit, but also steadily pays down the underlying mortgage on your properties.
Of course, being a landlord is hard work in and of itself, and arguably takes as much effort – if not more – than flipping houses. There is less risk with being a landlord, though, especially if you turn to a property management company to handle the administration and day-to-day burdens of running your real estate empire.
If you want to pursue the path of turning rental properties into income, and are looking for a Birmingham, AL property manager, call on gkhouses.com and contact us at 205.940.6363.