Property flipping is an enjoyable and lucrative way of investing, and potentially making, money. Buying a house and then improving it to the point of profit is an increasingly common choice for many people, but what happens when your flip is complete?
This is a stage that many people contemplating flipping a property don’t necessarily think about. It’s easy to become consumed with managing the flip itself and performing the renovation work; there’s not a huge amount of leftover time in which to schedule your next move. However, by the time the “sold” sign goes up on your property and you’ve received the profits from the sale, you’ll ideally have an idea in mind as to what you’re going to do next.
In an effort to guide you in the right direction, here are a few next steps that you’re going to want to consider…
Flip another property!
Sometimes, the simple answers are the best. When you’ve successfully flipped a property, you know that you can do it again. You have a wealth of experience under your belt that is going to make your second flip far more efficient than your first, which should help to increase your return on investment.
You can either flip a similar property to your first choice, or opt for something a little more adventurous. It’s worth considering multi-family homes as a larger flipping project; there’s plenty of property options to peruse at T.J. Lamb Real Estate and similar sites, which offer the next step up after your first successful flip of a single-family dwelling.
Become a landlord
It’s a big step, but if you have enjoyed dabbling with the world of property thus far, why not consider becoming a landlord?
In many ways, life as a landlord is not that different to standard property flipping. You still buy properties and improve them. However, at the end of the renovations, you simply look for tenants rather than a buyer. Renting out property can provide a second steady income and, if you use managed property firms, can be relatively stress-free for you.
Move onto something else
The truth is that property flipping is hard work. When perform your first flip, you’re stuck with it: you’ve made an investment and you’re going to have to see it through to the point of sale. If, however, you genuinely dislike the process, then no profit margin is going to make it worth flipping a property again.
Sometimes, the best thing you can do is acknowledge you tried something, it went well… but now you don’t want to do it again. Take the profits you’ve made and look for other forms of investment; there’s no harm in acknowledging that property flipping isn’t something you want to repeat.
During the flipping process, keeping part of your mind on the next steps when the flip is complete will always be beneficial. Hopefully one of the ideas above will inspire you, and allow you to continue your journey in making the most from property investments!