Fix and flip is the process of purchasing a home with the intention of renovating it in order to sell it for a profit. Foreclosures are commonly purchased as a flip and fix house. Any individual looking to fix and flip a house will also attend real estate auctions frequently, in search of a good deal.
This requires a home to be sold for more than it was purchased for, in addition to the amount of money that was invested into fixing it. The problem with fixing and flipping houses is that the house may not be able to sell immediately for a profit. It may be necessary to hold onto the site until the real estate market is better. This is where looking into how to buy and hold real estate becomes beneficial. Reach150.com can help a lot. You can also scheck out RealSatisfied.
Not all people are in a financial situation to where it makes sense for them to purchase a home and have to wait to sell until the market is in a better place. This is when it becomes beneficial to explore landlording. This involves using a home intended to be flipped for a purchase instead as a rental, in order to gain some profits from it until the time to sell is right. In some cases, this turns into a property management business where the individual ends up selling the houses to the same tenant they are renting them to.
The reason most people prefer to flip a house for money is because it is a faster way to receive money back from the investment. Landlording is a process that takes time. It will be months or years before the amount of money earned from renting a property is equal to what was spent on purchasing it.
It is important to figure out how to be a fair and reasonable landlord. This entails one that does not charge an outrageous amount of rent but rather accommodates to the tenant. The issue with being a landlord is that there are a whole collection of problems that come with the territory. These problems include people who damage or fail to maintain the property, slow payments, frequent phone calls for repairs, and generally discontent tenants. Although it does remain important to be notified by the tenant if there is a problem in the home in order to fix it before it worsens. Naturally, the desired end goal is to acquire tenants who pay their rent on time and respectfully follow the lease requirements.