Real estate investments typically follow two main strategies: flipping and renting.
Each approach presents its own set of benefits and challenges; Nova Marketing can guide you through each investment approach so you make informed decisions aligning with your financial goals using our Real Estate Investment Strategies.
Flipping Properties Quickly with High Returns
Real estate flipping involves purchasing, renovating, and then selling properties at higher prices – hopefully for a profit – with hopes to resell later.
Here are a few key points for flipping real estate
Quick Returns on Investment
Flipping properties offers faster returns compared to renting, since renovations should be sold as quickly as possible after renovations have taken place.
Flipping requires active involvement on your part – from overseeing renovations and managing contractors, to keeping an eye on progress of projects and the completion of renovations.
Being successful at flipping requires having the skills needed to identify undervalued properties and accurately estimate renovation costs.
Flipping Real Estate Is Inherently Risky
Though flipping can yield substantial profits, the risks involved with doing it yourself can also be higher than expected. Market fluctuations, unexpected renovation costs or an extended sale process all pose potential threats that can reduce returns substantially.
Flipping can be capital-intensive
To be profitable in real estate flipping requires significant initial expenditure for purchasing and renovating properties.
Renting Properties Can Bring Steady Income and Long-term Gains
Renting out real estate involves purchasing and leasing it out to tenants, with some key points to keep in mind before embarking on this path:
Rental Property Provides Steady Cash Flow
Rental properties provide steady cash flow via monthly rent payments, making them an appealing passive income option.
Over time, rental properties may appreciate in value over time, creating both rental income and potential equity growth for future ownership gains.
Though less time-intensive than flipping homes, renting requires property management skills nonetheless. You’ll be in charge of tenant relations, maintenance needs and upkeep needs of both tenant units and your own.
Renting offers less risk
Rental properties tend to be less vulnerable to short-term market fluctuations compared to flipping properties.
Mortgage loans with more favorable terms make real estate markets more accessible, making the purchase of rental properties even easier to acquire.
Selecting an Appropriate Strategy
Deciding between flipping or renting depends on your financial goals, risk tolerance and level of involvement desired. Nova Marketing can assess your specific circumstances to help identify an ideal strategy to suit them.
Note that many investors take a hybrid approach, opting for both flipping and renting properties within their portfolio. You might start off flipping properties to build capital before eventually transitioning over to rental properties for long-term income and growth opportunities.
Flipping and renting both have their place in real estate investment. Nova Marketing provides expertise and guidance necessary for successfully navigating either Real Estate Investment Strategies. From fast returns with flipping, or long-term stability with rentals – Nova Marketing stands by you throughout your real estate investing journey!