If you have the time, the energy, and the know-how, house flipping is a fun and fast-paced way to turn an excellent profit in the housing market. But the fact of the matter is that house flipping isn’t for everybody, and it’s not always the best way to make the most on your investments. Sometimes it makes more sense to hold onto a home for a longer period of time before reselling it. And if you have the house in your possession for a few years, it only makes sense to rent it out and earn some cash in the meantime.
This is a strategy known as Buy & Hold, and more and more investors at ZINC Financial are turning to this innovative strategy. Renting is becoming more popular across the United States, and there’s a lot less stigma now surrounding renting a property versus buying. Families with the ability to buy are instead choosing to rent to give themselves flexibility and avoid the potential risk of the housing market. Investors, on the other hand, recognize that the housing market is on an upward trend and now is actually an excellent time to buy.
But if you don’t have the time or energy to devote to competing over the best fix and flip properties, you can instead look for properties that are in good condition that have a high probability of renting. By taking out a Buy & Hold loan for a period of 48 to 64 months, you can watch the value of your property appreciate over the years while also earning monthly cash flow from your renters. Buy & Hold is a great way to make excellent ROI for several years with minimal time and investment.
Of course, there are some drawbacks to being a landlord, such as the hassle of finding renters, dealing with maintenance issues, and all of the legal paperwork. But there are also a lot of excellent benefits such as tax breaks, regular monthly income, and of course, the long-term value growth of your property.
If you haven’t considered becoming a landlord, take a moment to talk about the possibility with your private money lending firm, ZINC Financial. Our financial experts can answer all your questions about Buy & Hold strategy and provide you with insight into the current California housing market. Call 559.326.2509 now to learn more.