Investing in real estate can be a very fun and lucrative business, especially if you are patient. Typically, investors will buy properties for one of two reasons: flipping or renting. Regardless of which route you choose (and you can do both), there are pros and cons associated with each avenue.
When it comes to house flipping, you can buy a property and flip it for a profit. The great thing about this method of investing is the full return on your investment once the house sells.
On the other hand, having an income property (the one you rent out) often requires a little more patience, but can provide a relatively stable source of income for many years to come.
If you decide to invest in rental homes, then you will have to determine if you would rather be a landlord or hire a property management company.
One of the hardest things about being a landlord is the massive amount of time that it can take to properly manage a property. From selecting tenants and collecting rent payments to scheduling repairs and marketing your rental properties, simply managing a few properties can quickly become a full-time job.
As are the result, when you chose to invest in rental properties, make sure you honestly have enough time to manage the day-to-day aspects of the business or hire a property management company to handle these aspects for you so you can focus your time on finding new investment opportunities.
Avoid the Stress – Hire a Property Manager
Along with being a huge time commitment, being a landlord can be rather stressful, especially when having to deal with problematic tenants. A property manager will take care of all of these issues and will thoroughly screen tenants on the front end, helping to decrease your likelihood of having tenant issues in the future.
At the end of the day, when investing in rentals make sure you are prepared to commit the time that will be needed to manage the property successfully or hire a property management company to handle the day-to-day aspects.
If you are investing in Birmingham, AL rental homes, then contact gkhouses.com at 205.940.6363 and allow us to handle the day-to-day management of your income properties.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.