A flipped property pays for itself right away and also leaves enough of a surplus to make the purchase have been worth it. There are even Television shows specializing in it! Why then, would anyone be interested in leasing out instead of selling at the same time? There are many reasons.
To begin with, there is no for sure that a sale will happen immediately, specifically in the middle of an economic situation. While there will almost always be a market for well built homes that are reasonably priced, more and more tenants are looking to pay less by renting which means the market is or will be inundated with possible renters right away.
While it may be possible that a resold property covers its own expenses (with some left over) on the short term, it is also true that the correct rental property will pay for itself several times over in the long term. Finally, a sold property create a lump sum of money whereas a house generates a a solid amount of cash over an the future, offering a kind of solid income that even the most lucrative of house flipping careers can’t match.
Deciding to invest in rental property requires knowlege, financing and a long term commitment. An investor should know about the types of properties he can invest in (one family houses, condos or homes for more than one family) their respective pros and cons (amount of your full commitment they need, how much they make) and also important the local and global real estate market (types are wanted right now, what is the average price of rent). Under the correct set of events and with the correct person it can make a valuable and extended source of money.
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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