Real Estate Strategy: Rehabbing to sell or Rehabbing to Rent?
Once you have decided that you want to get in to the real estate rehab business, your next step is deciding whether or not you want to keep the property after the rehab is done. You have two choices when you get into the rehab business. You can either sell the property once it is complete or you can rent it to tenants.
Renting the Property
One of the biggest benefits to renting a rehabbed property is that you will start to have continuous income, as long as it is rented out. Over time, you can get more and more money from the rehab if it is priced right. On the flip side, you will have to manage the rental. It will take more work and you will have to ensure it is continuously rented out as well as take care of any repairs as they come up. There is more work that goes along with renting a property but it can be worth it if you do not mind the extra work.
Selling the Property
Selling the property also takes some effort but it only lasts until you sell the property. You will get a large sum of money from the buyer at one time instead of monthly payments from tenants. The risks that come with this option is the fact that it may take some time to sell or you may not get enough money from it to make the rehab profitable.
You may be interested in doing both of these things with different properties after you have completed rehabbing a property. You may want to explore your options based on each individual property because the decision to rent or sell it may depend on the cash flow you could gain from each. For more information about rehabbing homes, be sure to contact Flipside Capital.