The real estate experts at Cobalt Creek Property Management in Denver, Colorado are here to help you break down flipping houses vs. owning rental properties. Both forms of real estate investing have their benefits, and many people make money from both. Let’s explore the pros and cons of each and explore how you can profit from them.
The Benefits Of House Flipping
Many people see the continual rise in housing prices in Denver and wonder if flipping a house would be a profitable enterprise. Flipping houses is a high risk, high reward endeavor that has gained a reputation for making people rich quickly. Here are a few of the most significant benefits of getting into house flipping:
- Adding Value To An Unwanted Property
- No Long-Term Responsibilities
- Large Pay-Outs
Flipping Houses Can Be Hard Work
One of the most significant drawbacks to house flipping is the considerable time commitment it requires. You are always working on a property, trying to sell a flipped house, or looking for new homes to flip. In addition, there have been studies published in the Denver Post, in which Denver ranks low compared to other metro areas in terms of house flipping profitability and shows a decline in the number of homes being flipped and sold.
Can You DIY?
If you are handy, you can do the renovation work yourself. Otherwise, you’ll need to hire and manage construction crews who can do it for you. This can take considerable amounts of time and money.
Payday Is Not Set In Stone
You will earn a lot of money from a single flip, but when you get it depends on how fast you can sell the flipped property. A successful house flip can take months or even a year to complete.
Owning Rental Properties – The Pros
Becoming the landlord of rental properties is a long term investment strategy. You are in it for the long haul. Owning may not be as thrilling as flipping houses, but it has plenty of other benefits:
- You Provide A Home For People
- Steady, Passive Income You Can Count On
- Equity That Grows Over Time
- A Path To Financial Independence
Landlord, Manager, Maintenance Worker?
One obvious downside to owning rental properties is that you are responsible for managing your investment properties. This includes the day-to-day work of maintenance, collecting rent, and communicating with tenants.
Are You A People Person?
There are also the tasks of finding and screening new tenants to replace the ones who are moving out. You want to make sure your investment home is continuously making you money instead of just sitting empty on the market or standing filled with a renter who won’t pay.
Buying Or Flipping? Property Management Can Help.
At Cobalt Creek Property Management, we act as a full-service real estate broker. We can help you find and buy properties that are ready for flipping. Once you’ve renovated these homes, we can help you sell them at a competitive market price.
We also find, screen, and communicate with tenants for our landlords. Maintenance calls and rent collection are no longer a hassle when you have a whole team to take care of them for you.
Ready To Add Experience To Your Team?
Whether you’re looking to buy and hold properties or buy and flip them, Cobalt Creek Property Management can help. We can help you acquire, protect, and steadily grow your investment properties in Denver Colorado. Contact us today to get in touch with our real estate professionals.