What Should You Do With Your Fixer-Upper? | United Country Real Estate
What Should You Do With Your Fixer-Upper?
Getting into the home-flipping or a home rental business in Kansas City, MO, is intriguing in the current market where the number of people who want to buy exceeds the inventory. However, is it better to sell a property or rent it?
Pros and Cons of Flipping a Fixer-Upper
Purchasing run-down properties, or those that need minimal work, and investing the resources to turn them into showplaces can be profitable in a hot market. Once you remodel and sell the property, you no longer have an attachment to it. You make your money and move on to your next project, but it may take some time to sell if the home is in an area without amenities buyers seek, such as shopping, upscale dining, and good schools. If you borrowed money to make improvements and can’t sell the home quickly, the interest on your loan could eat into your profits. However, in the current seller’s market, you’re likely to get several offers that exceed your asking price.
Pros and Cons of Holding as a Rental
Some investors like the idea of remodeling properties and building a real estate portfolio. Renting homes can be lucrative because some renters prefer single-family dwellings to apartments. If you purchased the fixer-upper at a reasonable price, the monthly rent could cover your loan and provide a handsome profit. You can build a successful rental business if you buy, remodel, and lease several homes under those conditions. You can hold and rent properties and then sell them when it’s right for you.
Plan for Expenses
You need funds to cover insurance, repairs, and property taxes when you own rental properties. Tenants will want you to make repairs ASAP, so you’ll also need a maintenance crew or a contract with reliable and efficient service providers. You may want to hire a property manager to handle repairs, maintenance, and rent collections.
Tenants who don’t pay on time can put your finances at risk, especially when you have a mortgage on a rental property. Some renters may take great care of your property. Others may damage it, and when they move, you may not receive rental payments for months while you undertake costly and extensive repair costs.
Marketing Your Rental Property
If you choose to rent out your property, there are several ways to advertise. Social media is a low-cost and quick way to reach the masses and avoid having your property vacant for weeks. Great photos are essential for showing off your rental. Begin by uploading pictures of your property to an online photo resizer. You can resize image online without sacrificing quality. Once you resize the images to your liking, upload them to your favorite social media platforms, and start your marketing.
Seek Information to Make an Informed Decision
Do your homework, whether you decide to flip or sell a newly remodeled home. Research your market, and determine what’s best for your bottom line. Whether you hold and rent or flip, you can make money in a competitive housing market.
If you have properties to sell in Kansas City, MO, it’s easier when you have help. Contact United Country Real Estate to learn how easy it is to get your property in front of people waiting to buy.
