Are you looking to flip real estate? Maybe you’re wondering if it’s better to hold real estate instead. In this blog post from We Buy Houses Cash Dallas, you’ll read about the “advantages of flipping over holding in DFW.”
Are you thinking about investing in real estate? If so, perhaps you’re weighing your options and wondering if wholesaling, renting, or flipping are your best options. If you’re thinking about flipping in Texas then here are advantages of flipping over holding in DFW.
Flipping Over Holding — Advantage #1
The first advantage of flipping over holding in DFW, is the quick turnover of income. You can invest in a flip on the first day of the month, make improvements through the following days, and then sell and be completely done with the property in just a couple of weeks or months.
This is a huge advantage because it means you don’t have to deal with a lot of problems that occur when you hold properties for a long period of time (such as maintenance and upkeep) plus you also get the benefit of generating your income regularly and getting a full return on your investment within weeks instead of having to wait years.
Then again, when we buy and hold a property, you we do a lot of rehab to the whole property. Our thought here is, doing a complete rehab adding rental grade rehab to the property. we will not have to address up keep issue for some time, usually six to ten years out or when tenants move out. So, the so called advantage of flipping over holding in DFW, does not hold water on this particular issue. We would rather receive a good monthly income as opposed to a one time income from the sale of property.
Flipping Over Holding — Advantage #2
The second advantage of flipping over holding in DFW, is that you don’t have to deal with tenants. Investors who buy and hold real estate usually rent it out to tenants… and tenants come with problems! They don’t pay on time, they forgot to pay, they damage the property, and they sneak out in the middle of the night.
But with flipping, you’re only dealing with wood, nails, and drywall. These are things you control and you don’t have to worry about whether the tenant is going to steal from you.
This particular advantage of flipping over holding in DFW, is easy to overcome. We only buy rental properties in middle to higher end areas of town. In doing so, we only deal with a more responsible tenant who comes with a better income than you will in lower grade areas of town. Plus, we let the property manager(s) deal with all the repairs and tenants, which has worked out very well for all. That’s what the manager(s) get paid for anyway.
Flipping Over Holding — Advantage #3
One of our favorite reasons for preferring flipping over holding is your ability to influence the selling price (and therefore your return). This advantage of flipping over holding in DFW, may sound good, and having the ability to influence the sale price works well when the house has been completely updated.
You see, with a rental property that you buy and hold, you’re limited by the rental income. You can’t charge more than what a tenant is willing to pay and there’s a limit to how much tenants are willing to pay! (And some areas of the country are even rent-controlled.)
But with flipping, you can knock down a wall or paint the walls or build a fence or add plants… and all to increase the value. and the best part is: the more you do, the more you can typically increase the value. This instance or advantage of flipping over holding in DFW, can be true to a point. You see, when you own hundreds of doors paying rent, your rental income grows to a point where, every month is the amount received per one sale. In other words, grow your rental properties to equal or surpass the sale of any given property.
Flipping Over Holding — Advantage #4
Our other favorite advantage of flipping over holding in DFW, is the large pop of income. A rental property gives you only a few hundred dollars each month. You may invest thousands and eventually get it all back but in the meantime you only get a small trickle of cash flow month after month.
But with flipping (assuming you’ve bought low and sold high) you can make thousands of dollars at once. That’s a big pop of income each month!
Yes, that is true to a point. But when you purchase multifamily units, the monthly income is high every single month. We like to buy small multifamily units. Property such as fourplex’s even duplex’s are great monthly in. You see, when you buy a fourplex, two rental unit will pay for the whole fourplex in management, mortgage and insurance. This is true if you buy correctly. The remaining income from the other two rental units is pure income for the property owner, you. So, the advantage of flipping over holding in DFW, in this scenario just doe not hold water.
Summary
If you’re debating about whether you should flip or hold, there are advantages and disadvantages to each. But these advantages of flipping over holding in DFW, give you a compelling reason to seriously look at flipping as an option for you.
If you’re looking for properties to flip, we might be able to help you out. We buy properties in the DFW area and would be happy to see if there’s a property that might work for your flipping needs. Just click here to go visit our web site, and enter your information in the box provided there, or pick up the phone and call (214) 723-1304.
We want to Thank You for reading our blog post the advantages of flipping over holding in DFW. This one blog was enjoyable as we purchase different properties for different reasons. If it were up to me, we would purchase more rental properties for the monthly income.
