You have seen the TV shows? Buy a house, put in minimal work and sell it for a huge profit. It seems so easy and the profits are more than most of us make in a year. With the downturn in the real estate market & the disasterous results in the stock market investors are wondering where to put their money?
Throughout the sellers market fix & flip investing was everywhere and it seemed that everyone was doing or at least wanted to do it. Now that the profit margins have dried up, only the serious investors are attempting Flips. However there is a new type of flipping that is starting to become very popular, it is Called Fix & Hold.
With all of the foreclosure properties and short sale properties hitting the market there is a huge opprtunity to buy these homes substancially under market value, at this point you make enough necessary repairs to make the home a viable rental property and keep it as such for several years. Once the market returns you can consider doing a more extensive rehab of the property and then Flip it.
With all of the foreclosures, market trepidation among buyers and harder to come by mortgages we are seeing a lot more renters and a need for more rental properties. Why not take advantage of this and buy the under market homes? When the market does improve you will already have several undervalued assets that you can fix up and flip and in the short term you will have a rental property that is hopefully making monthly profits and providing much needed tax relief.
The prolonged sellers market brought a get rich quick mentality and many investors gave up on long term real estate investing. Now is the time to start looking into long term investments. The significant saving that you can find today will reap huge rewards during the next sellers market.
If you have been considering a long term approach to real estate investing give us a call. The Russell Home Team has over 10 years experience helping investors reach their long term in versting goals.
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Michael, Kudos to you for telling the truth. Too many agents want a quick sell and do not worry about the buyer. They see $$$$$. You will be rewarded for this blog if it helps an investor in Johnson County.
Best of wishes!
Your right Michael fix and hold is a fantastic strategy. We encourage are clients to do two long term rentals per flip but its difficult to get a client who has flipped several properties to hold on to one for awhile. None the less buy and hold is a strategy I recommend highly. Much less risk.
Michael, I like the strategy, if you can be a landlord without too much hassle. If anybody wants I've got a 'rental analysis' spreadsheet that I got at a class that I'd be happy to e-mail to them!