While each real estate investor is unique, they also have a great deal in common. One of these commonalities is determining how to utilize each investment to realize the highest returns while serving your own best interests. Both fix and flip and buy and hold strategies are rewarding. So, if you are a real estate investor trying to determine which is best for a property you have found, read on to explore the critical reasons in deciding whether to fix, flip, or buy and hold when investing in real estate.
Speed of Returns
One of the most crucial factors to consider is how quickly you need to realize the returns on your investment when determining if you should fix and flip or buy and hold when investing in real estate. With an investment strategy focused on building a reliable monthly cash flow, the long-term road of buy and hold for the investment is absolutely the way to go. As economic changes occur, the pace of rentals tends to keep rates with inflation, allowing you to continue living in the style you’ve become accustomed to without having to make sacrifices. On the other hand, if you need an influx of cash, then flipping the property is your answer. However, when you find a great deal, it pays to have done your networking and built a team of reliable professionals to move swiftly on the project so that the delays in cashing in on your flip are as few and far between as possible. Working with a seasoned local professional investor like those at Modern Properties Solutions means that you will benefit from our in-house full-service team and our entire network of highly regarded tradespeople and specialists in the housing industry, ready to jump into action on your investment property.
When investing in real estate, your current amount of on-hand cash must also be factored in when choosing between the fix and flip or buy and hold method when investing in real estate. While you’ll need to have funds available either way to afford to complete all necessary work and cover surprise expenses that may arise during the project. You should have a long-term plan to cover potential vacancies and maintain the property when you choose to hold the property. Now, if you instead select the fix and flip method, you should be able to afford to hold the property while listed. Before beginning your project, be sure you’ve calculated the cost of materials and allowed room for increases, which can happen swiftly and throw your figures off, sometimes by thousands. Without realistic expectations, many investors find they cannot complete the repairs on the investment property. Experienced investors like the direct buyers at Modern Properties Solutions can help you run the numbers using the formulas that investors rely on so that you won’t run out of funds.
Last but hardly least, another essential factor in deciding if you should fix and flip or buy and hold when investing in real estate, quite simply put, is which method you enjoy more. Many investors look forward to the personal interaction with their tenants and enjoy building relationships that last a lifetime, finding it one of the most highly motivating factors in their daily business functions. Yet others prefer to keep their interactions with the future tenants at an arm’s distance, and some avoid dealing with tenants altogether, hiring a property management firm for those properties they do hold. Even if you are a people person and enjoy interacting with tenants, there comes a time in every real estate investment business where wearing every hat begins to limit your potential. At Modern Properties Solutions, you can be confident our property management team will work with you and take on as much or as little of the duties as possible, allowing you to continue to build your investment business while enjoying what you do. As a bonus to this working relationship with Modern Properties Solutions, our professional investors will keep you apprised of any upcoming market trends or local city plans which may affect all of your investments.
Let the pros at Modern Properties Solutions help you avoid mistakes that can eat away at your valuable time and budget when deciding if you should fix and flip or buy and hold when investing in real estate. The professional investors at Modern Properties Solutions know the real estate market. At Modern Properties Solutions, our direct buyers can help you locate the best property available within your budget, in the best possible location, to help you realize the highest potential returns, whether that is over the long term with a buy and hold or quickly with a fix and flip. And don’t forget to ask about our current inventory of the best investment properties available in . Call Modern Properties Solutions at 844-978-0005.