The new buzzword is house flipping. T.V. Shows, magazines, and countries stories and articles about house flippers are all over. More people are now house flipping than ever before.
House Flipping, also known as real estate investing can actually be fairly easy to get into and start making money.
While you can always run the risk of a flip instead of a flop, renting homes, and even using services like Airbnb, are a great way for you to start real estate investing.
Start real estate investing today with these 3 easy tips!
Airbnb / Rental Investments
Airbnb has made it easy for literally anyone to start running a spare room from out of their home.
For those that are unsure about becoming a landlord, Airbnb is a great way for people to learn the ins and out of how to landlord, without the major setbacks of a rental unit.
Renting is a great way to start real estate investing you can have a constant flow of income, also known as passive income. While there can be tenants that make renting a nightmare, doing background checks on tenants, and even holding tenant interviews is a great way to filter out bad tenants. If You are unsure about renting a property, read more here about the pros and cons of property managers
Renting can help fund other investments down the line, and is a great way to keep a property in good condition and work for you while you pursue other incomes. Most real estate investors start by investing and move into large real estate projects down the line!
Home rehabs are a great place to start if you are thinking about becoming a house flipping. In fact, you can even think of a home rehab as a mini flip, says This hard money lender arizona.
In fact a small rehab before listing a property for sale, not only will it improve it’s visible to buyers, but also will sell for more, and faster than without it.
Home Rehab is simply making small to medium repairs to improve the property value of a home to make it more appealing to buyers or possible tenants.
Home Rehabs can include any of the following: a minor kitchen renovation, exterior and interior paint, improved and scaping, and other minor improvements.
Home rehabs make a home ‘move-in ready’ which raises the value and overall profit for the investor.
Learn more about home rehabs here!
The Holy Grail of real estate investing, house flipping.
House flipping can look like a lot of guesswork on the outside looking in, but those that can master finding, upgrading, listing, and selling a flip can be very profitable.
“House flipping is very exciting to many real estate investors because the potential to make a large lump of cash is always there if you are willing to put in the hard work. Having a complete understanding of what your market wants, needs, and can afford is vital for successful house flippers. House flipping is a great way to earn a lot of money but it isn’t for everyone.”
There are many Guides on how to start house flipping, but before you start looking at houses you should know the following:
- What your market needs: Are more people looking for rentals or homes, is the housing market favoring buyers instead of sellers? If so, it might not be the right time to buy a home.
- What is the best location: Where are people moving to in your town? Where are the best schools, and what are the best neighborhoods?
- What is Your ARV: ARV or After repair value of a property. This is the math house flippers use to determine the profit they can expect to make after they make repairs and what to sell a home for.
House flipping is fun and exciting, but it can also cost a lot of money, and there is a large amount of risk involved. Most Real estate Investors use either their own passive incomes (from rentals) or hard money loans to fund there flips. Flipping a house can come with many challenges, but those that play their cards right can reap huge rewards.
Real estate investing is never easy, but doesn’t mean that you can’t start investing today! Each Type of investment comes with risks and rewards, but for those just starting these 3 types of investments can start earning you money today.
- Rentals: Using Services like Airbnb and renting a property is a great way to build passive income, and start utilizing properties you have today!
- Home Rehabs: Also Known as ‘mini-flips’ home rehabs make properties move-in ready for sellers or tenants and are a great way to try your hand at house flipping.
- House Flipping: House flipping can be challenging, but dedicated investors can see huge returns for those that do their homework and take risks.
Are You Ready To Start Real Estate Investing?