Are you thinking about investing in real estate? If so, perhaps you’re weighing your options and wondering if wholesaling, renting, or flipping are your best options. If you’re thinking about flipping in California then here are 4 advantages of flipping over holding in Modesto…
Flipping Over Holding — Advantage #1
This is a huge advantage because it means you don’t have to deal with a lot of problems that occur when you hold properties for a long period of time (such as maintenance and upkeep) plus you also get the benefit of generating your income regularly and getting a full return on your investment within weeks instead of having to wait years.
The biggest drawback to this method is that you can usually only get a few mortgages in your name at once before the banks won’t lend you anymore. That will limit how many properties you can flip at once.
Flipping Over Holding — Advantage #2
The second advantage to flipping over holding is that you don’t have to deal with tenants. Investors who buy and hold real estate usually rent it out to tenants… and tenants come with problems! They don’t pay on time, they forgot to pay, they damage the property, and they sneak out in the middle of the night.
But with flipping, you’re only dealing with wood, nails, and drywall. These are things you control and you don’t have to worry about whether the tenant is going to steal from you.
Flipping Over Holding — Advantage #3
But with flipping, you can knock down a wall or paint the walls or build a fence or add plants… and all to increase the value. and the best part is: the more you do, the more you can typically increase the value.
Flipping Over Holding — Advantage #4
But with flipping (assuming you’ve bought low and sold high) you can make thousands of dollars at once. That’s a big pop of income each month!
If you’re debating about whether you should flip or hold, there are advantages and disadvantages to each. But these 4 advantages of flipping over holding in Modesto give you a compelling reason to seriously look at flipping as an option for you.