There are many factors to take into consideration when you are trying to decide if you should flip houses in Chicago or become a landlord. Depending on your available finances, time, and your financial plans, you may want to consider a combination of both, at some point along your future investment path.
Pros of Flipping
The ability to turn a large profit over a short time period may be the reason you decide you should flip houses in Chicago over becoming a landlord. It can be exciting to see the dreams you have for a property come true and know that you have provided a family with a great new home. It is also thrilling to see your bank balance to have a sudden dramatic increase. You will also be building your network in the real estate arena as well as with professionals in the contracting field.
Cons of Flipping
Your ability to balance all of the work involved in flipping and managing a team is another factor to consider when deciding if you should flip houses in Chicago or become a landlord. Careful attention must be paid to schedule to avoid conflicts in the progress of the work, which can be extremely costly. Not only financially, but professionals will also quickly tire of their schedules being thrown off due to your lack of planning expertise. Keep in mind that it requires the ability to be on top of the current inventory available for flipping and jump on new bargains as quickly as they enter the market. You’ll need to have ready funds for the investment as well as a strong rehab team on-call to quickly turn around the property for a profit. You will also want to be prepared for unforeseen and often very expensive issues that arise in renovating older properties.
Pros of Being a Landlord
The trend in steadily rising housing values over time makes holding onto real property as an investment vehicle very appealing. The current state of your finances is a decisive factor in whether or not you should flip houses in Chicago or become a landlord. If you have funds that can be set aside for the long term, in addition to other income, you can build your real estate holding portfolio as a landlord, while building long term equity. In this way, your investment grows in value while you’re realizing a monthly income stream.
Cons of Being a Landlord
On the other hand, while weighing the pros and cons about flipping houses in Chicago or become a landlord, you’ll also want to have funds set aside for all of the contingencies that are possible when owning real estate, in addition to the investment in the property. You will be wearing the hat of a lawyer, to avoid violating any federal laws governing rental properties and advertising as well. Likewise, you will need to build a relationship of trust with your tenants, helping to ensure better overall care of the property. You will need to handle any troubles your tenants have in a timely manner, showing them that you’re responsive to their needs and care for the property as well. You need to accomplish all of this while wearing the hat of the friendly but firm rent collector. If this sounds overwhelming, you may wish to consider hiring professionals and allowing them to
We are happy to help you weigh all of the factors to help you decide if you should flip houses in Chicago or become a landlord. Chicago Home Buyers will help you find the best properties for your investment needs. Just send us a message or give us a call at (312) 300-2043 today!