Investors have a decision to make once they’ve rehabbed a property. The main difference is whether you’re going to make income up front or whether you want an income stream to come in long term.
Below you’ll find an explanation of why one may work better for you than the other.
A buy and hold property is one that you’ll rehab and use as a rental. You’ll have property management costs if you choose to use a company to manage the property and maintenance costs. The goal of a buy and hold is to keep your costs to a minimum, so you have positive cash flow coming in each month. In this case you can still use a hard money lender to finance the purchase and rehab until you can secure long term financing.
Unlike a buy and hold, a Arizona fix and flip will be sold as soon as the renovations are completed, giving you instant cash flow to put towards your next investment. This can provide less stress with upkeep and monthly costs associated with a buy and hold.
So how do you decide whether to work with a hard money lender for a Arizona fix and flip loan or to focus on a buy and hold property? Here’s where having market knowledge will be helpful because some properties due to their specifications or location won’t bring in a high rental income. That should be a huge determining factor.
Also, if you aren’t able to buy the company with cash or obtain a loan that will give you low monthly costs that can be covered, and then some, by the rental income.
If you’re interested in making income from real estate you’ll want to research your options, get to know your market, and work with a knowledgeable team who can help you complete your renovation and then either sell the property or rent it out for top dollar.
To get more information on Level 4 Funding, a hard money lender, give us a call to set up an appointment to discuss getting your investment funded today!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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