There are many factors to think about when you are trying to decide if you should flip houses in Albuquerque or become a landlord. Depending on your available finances, time, and your financial plans, you may want to consider a combination of both, at some point along your future investment path.
Pros of Flipping
The ability to turn a large profit in a short time period may be the reason you decide you should flip houses in Albuquerque rather than becoming a landlord. It can be exciting to see the vision you have for a property become a reality and know that you have provided a family with a great new home. It is also thrilling to see your bank balance get a sudden dramatic increase too. You will also be building your network in the real estate arena as well as with professionals in the contracting industry.
Cons of Flipping
Your skills and ability to balance all of the work involved in flipping and managing a team is another factor to consider when deciding if you should flip houses in Albuquerque or become a landlord. Careful attention must be given to the schedule to avoid conflicts in the progress of the work, which can be extremely costly. Not only can it be costly financially, but professionals will also get tired quickly of their schedules being thrown off due to your lack of planning skills. Keep in mind that it requires the ability to be on top of the current housing inventory available for flipping and be able to jump on new bargains as quickly as they enter the market. You’ll need to have funds ready to go for the investment as well as a strong rehab team on-call to quickly turn around the property for a profit. You will also want to be prepared for unforeseen and often very expensive issues that arise in renovating older properties.
Pros of Being a Landlord
The trend in steadily rising home values over time makes holding onto real property as an investment vehicle very appealing. The current state of your finances is a decisive factor in whether or not you should flip houses in Albuquerque or become a landlord. If you have funds that can be set aside for the long term, in addition to other income, you can build your real estate holding portfolio as a landlord, while building long term equity. In this way, your investment grows in value while you’re receiving a monthly income stream.
Cons of Being a Landlord
On the other hand, while weighing the pros and cons about flipping houses in Albuquerque or become a landlord, you’ll also want to have funds set aside for all of the contingencies that are possible when owning real estate, in addition to the initial investment in the property. You will have to wear the hat of a lawyer, to avoid violating any federal or state laws governing rental properties and advertising of them as well. Likewise, you will need to build a relationship of trust with your tenants, helping to ensure they take better overall care of the property. You will need to respond to any troubles your tenants have in a timely manner, showing them that you’re responsive to their needs and care for the property as well. You need to accomplish all of this while wearing the hat of the friendly but firm rent collector. If this sounds overwhelming, you may wish to consider hiring professionals and allowing them to take care of it.
We are happy to help you weigh all of the factors to help you decide if you should flip houses in Albuquerque or become a landlord. Heritage Home Solutions, LLC will help you find the best properties for your investment needs. Just send us a message or give us a call at (505) 445-4005 today!