4 Dangers in Flipping Real Estate
Flipping real estate? Beware the following.
1. When you keep property for a few years, you may experience a surge in property tax if your taxes are reevaluated during that time.
2. Renovation Expenses.
If you bought a fixer upper at a bargain, will you recover the expenses and make a profit? Can you withstand a correction in real estate values?
3. Insurance and Mortgage Costs.
You will have higher payments if you don’t occupy your residence and you have tenants.
4. Rental Pressures. A market saturated with rentals means that rents you charge will be less than what you hoped to receive. Will the lower income levels and added expenses drag your investment down?
By finding a dependable tenant, appealing excessive property tax increases and doing the upgrades yourself, you could limit risks. With determination, you could gain profits.