Starting Guide to Investing in Dutchess County Real Estate
Are you tired of making the same old investments and ready to make a change into the Dutchess County real estate market? If you are looking to diversify your portfolio, investing in the Dutchess County real estate market can provide you with a good ROI.
There are two main areas that investors use for Dutchess County real estate: flip a fixer upper or purchase a rental. There are pros and cons to each option so you need to carefully weigh the options before jumping in.
The Flip
We have all become familiar with the concept of flipping Dutchess County houses over the past decade thanks to the many reality TV shows on the subject. Flips can provide a high return on investment if you know what you are doing.
Flipping Dutchess County properties can be the more affordable option. When looking to fix a house, you aren’t looking for the most expensive house on the block. You are probably looking at foreclosures and short sales while trying to find something that you can buy for well under market value.
The process of flipping a Dutchess County house can be fast if everything goes well. The goal is to rehab the house as quickly as possible, and then list it at the right price to receive instant offers. Sticking to this plan allows you to complete the work quickly and get the house to the new owner so you aren’t responsible for additional carrying costs.
It might sound easy to flip a house, but many Dutchess County real estate investors will assure you that it is not. Buying a house always comes with the chance of unforeseen circumstances, and buying a fixer upper increases that chance.
If you decide you want to flip a house, you need to carefully complete your due diligence in order to try to eliminate the risk of being caught off guard with an unexpected expense.
If you are looking to remain in the rental market long-term, you need to consider the cost of flipping houses. Every time you go through the process of a Dutchess County real estate transaction, you are paying additional fees that can eat away at your profit.
The Rental
After the crash of the housing market, many people lost their homes and were forced to rent. Many millennials watching their parents go through this struggle have a bad taste in their mouth about becoming a homeowner. That has led to an increase in the demand for rental units around the country.
Rental units can provide you with a steady stream of income. As long as you have tenants who pay when they are supposed to, you will know what to expect every month and what day you will be receiving it. As long as you choose the right price, this rent will cover the expenses of the house and leave you a nice little profit afterwards.
The value of Dutchess County real estate tends to increase over time. If you purchase a house and hold onto for years while renting it out, you can actually profit twice from the house: once as you are renting it, and again if you sell it in the future.
Sounds great, however, there are a lot of hassles that need to be considered before buying a rental. For starters, you never know what your tenants will be like. If you have good responsible tenants, you most likely won’t have a problem. But if you have bad tenants, you have no idea how much money you could need to spend fixing the rental back up once they are out.
Holding on to rental houses also keeps your money tied-up in the property. The Dutchess County real estate market can be unpredictable and while it tends to increase over time, there is always that chance that the bottom will drop out again, leaving you stuck with the property even if you want to sell.
The Dutchess County real estate market can be very lucrative if you go in with a strategy. Consider the two options and choose the one that aligns with your investment goals. Make sure you always have an exit strategy in place before making a purchase.