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Red shoes from above on the white arrows,dilemmas concept buy or rent
Certainly, investing in real estate is a lucrative business. However, it is challenging to be an expert in every aspect of this moneymaking tactic. Thus, you need to concentrate on one thing in order to be successful and become potentially good at it.

The investment question of whether fixing and flipping or buying and holding properties is a smart real estate decision does not have one straightforward answer. Instead, the choice to opt one plan over another has to be an explicitly crystal-clear strategic plan, taking your overall investment and financial goals as well as present real-estate market opportunities into consideration.

Fundamentals of Fixing and Flipping

Typically, fixing and flipping can serve as a potential source of earning for real estate investments. In fact, many utilize earnings from their fix and flips to help them fund their long-term rental purchases. Generally, a fix and flip is a house that a real-estate investor purchases, fixes up, and sells out immediately to realize a profit. Here, you need to know that productive fix and flip houses are relatively difficult to find. In addition, it is also challenging to make money using them by any means.

Finding a house cheap enough to make profits is typically the biggest challenge when opting to flip a property. With the gradual improvement in our market, owner-occupied purchasers are facing trouble in finding great productive deals. In fact, it is even more challenging for anyone to find a house cheap enough to flip. Besides repair costs you bear when purchasing a flip, you also have to bear carrying, selling and opportunity costs.

Financing Expenses of a Fix and Flip in Comparison to a Rental Property

Short-term financing is expensive when you do not have enough money to purchase a fix and flip. Even so, average creditors may charge at least 15% interest with 4% upfront when you buy a home. In comparison to fix and flips, long-term financing on rental properties is much cheaper and easier to obtain. In addition, banks and financial institutions prefer long-term debts, as they will be getting interest benefits for a considerable time period. On the other hand, they will not be receiving interest payments on fix and flips for as long as a long-term rental, thus, they charge home buyers more fees and interest.

Repair Requirements: Fix and Flip vs Rental Property

Fix and flips require top-notch repair work to get great profits and, subsequently, the buyer bears significant costs. On the other hand, renters are often less picky about properties, as they are neither personally tied down to the apartment nor worried about the roof, furnace, structure, and plumbing – since they are not responsible for any disorder and breakdown.

Investors on a flip have to pay heavily for a home they will own for a long-term period. They will get an expert inspection in order to make sure each and every thing on the property works properly and was well repaired. Although we are not suggesting a homeowner skimp on repairs, certain things may require a repair right away on rental properties that have to be repaired imperatively on a flip. There are several other costs in relation to a fix and flip versus a rental that an individual has to consider when making real estate investments with a goal to make profits.

Instant Profit of a Fix and Flip vs Long-Term Earnings from Rental Properties

Long-term rentals provide you with a monthly cash flow as long as you own and rent out the house. One can also refinance the house upon owning it a year and subsequently take money out. The longer you own a property, the more favorable chances you have of the house appreciating in value and decreasing in mortgage. In addition, you also have the potential opportunities for the rents to increase considerably. If you are able to put off the immediate gratification of the money you make from a fix and flip, you are going to make much more profit in the long run through rental properties.

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 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Real Estate Agents - Complete Controller

Real estate agents do the hassle for us. They search for a suitable house for clients, according to their requirements, and charge a minor fee for doing so. People looking to rent out their property will contact a real estate agent who then provides the details to their customers.

Real estate agents know the real estate market of the area. Once a customer decides the place that will suit them best, the agent shows it to them physically to make sure they meet the customer’s specifications. Agents dealing in properties have an idea of the schools, utility charges, public transportation, and other concerns related to the area that the customer is looking forward to buying or renting in. Check out America's Best Bookkeepers

The Role of a Real Estate Agent

People who are renting out or selling their property will list their house with a real estate agent. If the home is leased or bought within a given time, the agents are paid a commission price. These agents advertise the houses on the list. The commission earned by these agents depends on the cost of the property.

How to Find a Real Estate Agent

The first step is to determine where you will be renting or buying. Once established, look for a real estate agent that deals in that area. Here are some ways that you can find a real estate agent: Check out America's Best Bookkeepers

  • Meet real estate agents that are at open houses
  • Utilize the internet and search for various agents
  • Seek advice from friends and family who may recommend an excellent real estate agent
  • Search and contact firms that are advertising the homes in the area you are looking in

It is best advised to choose a single real estate agent if the customer is comfortable dealing with them. These agents usually specialize in selling in specific areas. It is preferred that you seek agents in that particular area.

What to Look for in a Home

Here are some things that you will have to consider when you have finally decided on the real estate agent with which you will be dealing. The agent shall help you with acknowledging:

  • The average rent of the area that you have agreed upon
  • The neighborhood of that area or household
  • The total distance and travel time to your workplace from the house
  • The schools that are available in that area
  • The various shopping malls/outlets nearby
  • The pharmacies or clinics located in that area Check out America's Best Bookkeepers

Ways that Real Estate Agents make Renting a Property Easier

Real estate agents help those looking to rent in various ways. They not only look forward to meeting their client’s requirements to the maximum but also helping them find a suitable and affordable residence in the desired area of their customer. Real estate agents act as powerful assets when negotiations have to be done with property owners. They sort through details, including the state laws, conditions of the market, and features required to qualify as a renter.

Pay the agent their desired fee, and they will make your home searching much more fun and easier, alongside providing you a wide range of options from which to choose. Let them do the work for you. Just keep your eyes and ears open at all times and enjoy your new home!

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers