Investment Options: Flipping vs. Long-Term Ownership

Investment property owners: Is it better to flip a house or to own a rental home long-term? Today I’ll discuss.

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If you’re in the market for an investment home, you might have come to a point where you’re struggling to decide whether to flip a home and sell it or to just hold the home and rent it out to tenants.

One of the most important things to consider when deciding between these two options is the return, or cash flow, you could get.

In the Denver market, for example, a good fix-and-flip property could get you between $20,000 and $100,000.

If you rented out a good single-family home you own for $2,500 a month, but your mortgage on the property is only $1,500, you’re cash-flowing $1,000 a month for life. Rents will go up and down over time, but the overall trend will be upward. You also might have repairs to contend with, so keep that in mind. 
Consider the profit margin for both options and how much work you’re prepared to do to make money from the property.
So would you rather make a quick $20,000 to $100,000, or the $12,000 a year for life? Flipping properties is an intensive project upfront that yields a quick return, and you’ll have to go out and find more properties if you want to continue making money that way.

Ultimately, consider the profit margin for both options and how much work you’re prepared to do to make money from the property. Whichever way you decide to go, I’d love to help you figure out the best fit and how to finance your next investment. Give me a call or send an email, and I’d be happy to start that conversation with you. In the meantime, have a great day!

2020 Market Predictions: How Rough Will the Waters Be?

In 2020, will you be holding onto your boat for dear life or will the waters calm? Here’s what we predict.

Buying a home? Click here to perform a full home search
Selling your home? Click here for a FREE Home Price Evaluation 

Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

The new year is almost here, which means it’s time to announce our predictions for the 2020 real estate market. Today we’ll be equating our market conditions to the danger rating of whitewater rapids. To get a sense of the scale, a 5 is when the water is extremely treacherous and a 0 is when the water is stagnant.

For nearly the last decade, our real estate waters have been close to a 5. We were constantly adjusting, constantly paddling, and constantly in fear of what would happen next. Things were crazy ⁠— I even sold a house for $100,000 over market price at one point! 
We’re no longer in dangerous rapids where buyers and sellers are living in chaos.
Now, however, our waters are more like a 2 or a 3. Costs have come down quite a bit, which means there aren’t as many multiple-offer situations going around anymore. With less dangerous waters, buyers and sellers have more time to think about their strategies and adjust accordingly. Offers are sitting around asking price or slightly below, and appraised values are very reasonable. 

This is how a normal market typically is, and it’s exactly what we’re heading toward. We’re still going down the river and seeing home values appreciate, but we’re no longer in dangerous rapids where buyers and sellers are living in chaos.

Essentially, 2020 looks like a year of stabilization for the market. If you have any questions or would like more information about the market, feel free to reach out to us. We look forward to hearing from you soon.

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