A rental property may be residential or commercial and leased by one or multiple tenants. On the flip side, fix-and-flip entails purchasing a property and renovating it.
Here, we discuss how Winston Deloney faces real estate investment challenges and uses them to his benefit:
Who is Winston Deloney?
Winston Delaney is a well-renowned real estate investor who provides novices easy access to significant financial and investment solutions.
Venture onto Winston Deloney’s blog to learn the art of real estate investing. He also provides beginner investors tips and tricks on investing, building portfolios, financing, and making better real estate decisions.
Should You Choose Flipping Houses or Rental Property?
The difference between purchasing rental properties and flipping houses is that rentals require passive income, i.e., monthly rent, while flipping requires active management.
While renters use the buy and hold strategy, house flippers focus on buying, renovating, and flipping houses.
Read:Do Rental Properties Really Build Long-Term Wealth? Real Estate Expert Winston Deloney Shares Key Insights
Top Things to Remember when Investing in Rental Properties
Moving real estate projects to success requires that one has available funds. At the same time, you also need to know a few tricks to invest in rental properties. Here are a few tips by Winston Deloney:
- New properties typically require rebuilding or rehabilitation of some form. If you’re planning on real estate investments, you must ensure that refurbishing it won’t require too many profits
- Winston Deloney believes that each additional second spent on a real estate property is a potential loss. Make sure the property you select is rent-ready if you need cash flow
- When it comes to purchasing a rental property, the chances are that you won’t record a positive cash flow. You need to measure and monitor factors like down payment, interest rate, and revenue to ensure a positive ROI
Ways Winston Deloney Encourages You to Use Investing Challenges
Real estate is a volatile and fast-evolving market that serves as a passive and tangible form of income. It is a lucrative means of investment. However, it comes with several challenges. Here’s how Winston Deloney tells novices to overcome real estate challenges:
- Being short on funds is the biggest challenge that investors come across. Thus, Winston Deloney advises investors in reinvesting in properties, use debt financing instruments and have emergency savings.
- Create a to-do or routine list to manage your everyday finances
- Lastly, Winston Deloney explains that business and investment opportunities require confidence. A lack of confidence can lead to you making poor investment decisions. So be sure to have in-depth knowledge and a positive cash flow.
Pros of Choosing Fix and Flip
On the other hand, Fix and Flip provides investors with several benefits such as:
- Enjoy a faster return on your money
- It’s a short term yet lucrative investment
- Potentially safer investment
How to Build a Portfolio
According to Winston Deloney, you should build your portfolio slowly and steadily. Then, learn to take care of a property, market it, and ways to deal with tenants occupying your rental properties.
The Bottom Line
In short, save up on emergency funds to ensure long-lasting success for your rental property investment.
Read:2021 Chicago Real Estate Investment Ideas: Winston Deloney Offers Key Insights