Flipping or Renting? Which Option Is Best?

By
Services for Real Estate Pros with Westbrook Realty

Flipping or Renting?  Which Option is Best?

Many investors, big and small, are reconsidering flipping houses

in this slow-as-molasses housing market we are in.  Renting an invest-

ment home is becoming a much more viable option in many markets,

including Grand Rapids Michigan. 

This article discusses the new trend to rent an investment house

to get a fast dollar return.  Single Family Rental homes are in high

demand in most market areas but check with your local realtor

before splashing into this pool.

 816WalshSE thumb Flipping or Renting? Which Option is Best?

Renting single family homes is very often the only choice for sellers

that find themselves unable to sell their home for the amount they

have invested.  This option can be a great alternative to selling;

as long as you have all your bases covered: 

 

  1. Renters may pay or not – Do you have contingency funds?
  2. Do you have an eviction plan? This can happen to anyone – be prepared.
  3. Renters may damage your property –Plan on additional funds.
  4. Video home before moving in with tenants – condition is verified.
  5. Houses need Maintenance – plan on time/money for repairs.
  6. Consider a property manager if you don’t want to deal with tenants.
  7. Home insurance canceled and/or increased – vacant homes are at risk.

The Rental home market isn't for everyone.  Be sure you know what you are

getting into before committing to this strategy.

 

Syndicated from: www.grandrapids-realestate.com

 

_______________________________________________________________________

Posted by

Westbrook Realty 

Grand Rapids MI Real Estate

Copyright 2011 All rights reserved

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
Michigan
Groups:
Realtors®
Dedicated Bloggers
Kent County MI Real Estate
West Michigan Real Estate
Tags:
renting your home
flipping a home
home owner rental risks
problems with renting a property

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
2,256,134
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Great post. I have been flipping houses for 40 years. I have not rented on house. The whole key to this business, the profit is in the buy. Buy it wrong and you will have a problem getting out. That also means you can price it right, no matter what the market.

Oct 19, 2011 05:22 AM #1
Rainmaker
137,737
Bonnie & Terry Westbrook
Westbrook Realty - Ada, MI
Grand Rapids MI Real Estate

Right Track:  That is great advice for an investor and it sounds like you have taken your own advice.  Not all homeowners find themselves in that position, through no fault of their own.  They bought their home at a fair market price and now that same fair market price is 20-40% lower. 

Oct 20, 2011 02:29 AM #2
Rainer
6,275
J. Paul Spica
Spica Real Estate - Byron Center, MI

Great article Terry & Bonnie. It's very important that an investor have a VERY clear understanding of the market. If they are not 'cut out' to be a landlord, real estate may be a little too risky

Oct 28, 2011 04:58 AM #3
Rainmaker
137,737
Bonnie & Terry Westbrook
Westbrook Realty - Ada, MI
Grand Rapids MI Real Estate

Thanks for the comment, Paul.  We see sellers considering this option all the time.  You are right, for some it is a perfect solution, for others, not an option.  Like any investment, it pays to know what you are getting into.

Nov 07, 2011 12:43 AM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
137,737

Bonnie & Terry Westbrook

Grand Rapids MI Real Estate
Ask me a question
*
*
*
*
Spam prevention

Additional Information