January 30th, 2019 11:08 AM by Marie Negron, Owner
Real Estate Investments: FLIP OR RENT
There are times when clients look to Marie Negron and her team at HOMM Real Estate Services to help them with real estate investments. There are several options that go beyond typical home ownership. For instance, clients explore second/vacation homes to own and/or rent, rent-to-own, flipping, or simply for the financial investment. Frequently, we find it comes down to a choice between flipping or rental home.
Income or Investment
Firstly, it is important that regardless of how, what or where you invest, you need to be aware when considering investing the opportunity to make money is as great as the risk to lose money.
However, the key to successful real estate investing comes with understanding what skills, time and abilities you have and your tolerance for risk. Also, to know when to bring in a real estate specialist to help you through the myriad of options, issues, and questions you are likely to have.
Only then can you choose a type of investment that works for you and whether or not you are a one-time investor or confident to repeat the model.
Investors can make great profits from both flipping properties as well as holding them as rentals. The difference really boils down to a few considerations. First, what kind of income are you seeking? Active or passive? Actively buying, fixing and flipping properties is quick cash that requires careful timing and effort.
Flipping a property is not traditional investing where one buys and holds an investment. Flipping is really speculation. Flippers with construction experience and real estate knowledge tend to see the greatest success. Yet, the real risk comes from unforeseen construction and structural complications, these cause delays, increased costs and potential decrease in the property’s value. Further, there are carry costs over and above the renovation to cover mortgage, taxes, insurances and real estate selling commissions.
Alternatively, if you’re in it for the long haul, rental properties offer passive long-term income which accumulates over time. Additionally, if properly managed and maintained, the property value should see an increase. The downside is that the owner has to invest time in property maintenance and tenant management. The reality is the most successful landlords overcome this by working with property management specialists. We’ve already addressed the good, the bad and the taxing of being a landlord which outlines the benefits of working with property management specialists HOMM Real Estate Services.
Both types of investments can bring profits and a steady stream of income. Determining what’s best for you and your talents is important in choosing the best option for your financial goals. Plus, recognizing when to bring in the experts. Allow us to use our experience, know-how and resources to help protect the value and condition of your real estate investments. Visit HOMM Real Estate Services Property Management to learn more about these services.
HOMM Real Estate Services, located in the Brandon, Florida area of Tampa-Bay focused to Hillsborough, Pasco, and Polk Counties. As a full-service general real estate company, we specialize in general real estate, home buyers, home sellers, new home construction, rentals, tenants and landlords, and property management.
Learn more about Marie Negron, her team and HOMM Real Estate Services. Call 813-684-5954 or email firstname.lastname@example.org to get started.