Flipping Metairie Real Estate vs. Buy-and-Hold

When you own the Metairie home your family lives in, you are by definition a real estate investor: it comes with the turf. Your investment is essentially a passive one. Until the day you decide to sell and move on, any improvement in its value is secondary to how well it serves to shelter your family.

Homes For Sale in Metairie

How you think about your investment—and how you proceed to manage it—is altogether different when you buy an Metairie home purely as a financial venture. For one thing, you face an immediate strategic decision: will you be flipping for a quick short-term profit, or aim for the long term through a buy-and-hold strategy? You have to weigh some pros and cons in order to make the right decision.                         Home Trends Report

Flipping

Pro: Capital is Freed

A flipping strategy minimizes the amount of time your investment capital is committed, freeing it for other uses. Should you identify another potentially lucrative investment, you will be able to take advantage of it.                                            Smart Home Price

Con: Unexpected Challenges

While flipping for short-term profit has definite ‘hands-on’ appeal, first-time investors can be surprised by unexpected complications. Properties that appear to be undervalued (and ripe for a quick flip!) may require costly fixes. Overspending on renovations quickly eats into profits, but underspending can lead to a lengthier holding time. Experienced Metairie flipping veterans have learned to successfully gauge a property’s true turnaround value.                                                                                               7 Seller Tips for 2015

Additional Consideration: Taxes

Metairie flipping has tax implications that impact the bottom line. Profits from a property owned more than a year are generally taxed at the ordinary income tax rate, while a property held for less than a year may be taxed at the capital gains rate. Local and state tariffs need to be considered as well—this is where input from a qualified professional is important.

Buy-and-Hold

Pro: Passive Investment

If management is outsourced to a professional property manager, the buy-and-hold strategy will require less personal attention than flipping does. Preparing a property for a flip often involves considerable time commitment and adept contractor schedule-juggling.

Con: Management Costs

The passive investment advantage holds true if outside management is contemplated— with commensurate expense. If you enjoy the challenge of successfully managing a property, this negative doesn’t apply.

Pro: Fewer Properties Need To Be Identified

Ultimately, successfully executing a flipping strategy means scrutinizing a huge number of properties over the course of time. In contrast, a buy-and-hold strategy necessitates finding only a few great bargains. Pursued intelligently, both buy-and-hold and quick flip strategies have proved profitable for many investors. Both call for finding solid value in Metairie properties—which is where giving me a call comes in!

Would you consider selling YOUR home? Name your price!

The culture of our city has so much to offer... Love our city, New Orleans.

Questions about buying or selling a home?
Call Terez B. Harris 
504.297.2619

View Homes For Sale in Metairie
View Homes For Sale in New Orleans

Terez B. Harris
Terez Harris NOLA Realtor Group

(504)297-2619

www.TerezHarris.com
TerezHarris@kw.com

See what your neighbor's home sold for...

See What Your New Orleans Home is Worth!

See What Your Metairie Home is Worth!

Metairie For Sale By Owner? 

 New Orleans For Sale By Owner?

      

Terez B. Harris   Terez Harris NOLA Realtor Group   504-297-2619   www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100

Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.