Listing Courtesy of DELMARVA RESORTS REALTY
When you own the Rehoboth Beach 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.
How you think about your investment—and how you proceed to manage it—is altogether different when you buy a 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.
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.
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 Rehoboth Beach flipping veterans have learned to successfully gauge a property’s true turnaround value.
Additional Consideration: Taxes
Sussex County 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.
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 Bethany Beach properties—which is where giving me a call comes in!
Even if you don’t pride yourself on your artistic flair, you probably have developed fairly firm ideas about what makes some Rehoboth Beach homes come across better than others. Without even consciously thinking about it, you know as soon as you walk through a front door whether that immediate impression is strongly positive, just so-so, or sub-so-so.
A Rehoboth Beach home’s agreeable first impression can usually be laid to a combination of pleasing architecture, diligent maintenance, and appealing décor. Not every home in town has all that going for it, but there can also be a saving note: sometimes the most important impression comes from just a few minor touches—clever accents that just seem perfect.
Now that we’re wading deeper into the months when Rehoboth Beach’s bad weather days are stacking up, we are more likely to find ourselves with some spare time—the commodity that was so hard to find when the sun was shining. That makes it an ideal time to browse through the web (or home decorating magazines, if any of those are around) to fire your creative decorating juices. There are websites galore that feature photos displaying imaginative design touches that other homeowners have come up with. Today, you don’t have to reinvent the wheel—when it’s being reinvented by thousands of others
All by itself, Pinterest is a single source of boundless do-it-yourself design ideas. The virtual pin board site is the source of billions of images its users are proud enough to want to share with the world (and a surprisingly large percentage live up to that appraisal!). Since there are more than 100 million active users every month, the images and ideas are constantly changing. If you’re open to new ideas, this is boundlessly rich territory.
If you enter ‘decorating’ in the search bar at the top of the Pinterest screen, you’ll summon up dozens of tabs (they look like color swatches) that lead to all sorts of classifications. There are Apartment, Home, Bedroom, Cabin, DIY, Room, Fall, Rustic, Kitchen, Bathroom, Wall, Ideas, House, Vintage, Country, Table, Dorm, Cookies (this leads to dessert-type cookies—so here ‘decorating’ means ideas for icing them), On A Budget, Farmhouse, Cottage, Bohemian (a suitable alternate title for that one might be ‘clutter’ or ‘gypsy wagon’) Beach, Nautical, Modern…you get the idea: just about everything.
Alternatively, once you are in the greater ‘decorating’ section, you can also just key in a more specific description of the area you’re exploring. For instance, if you put in ‘spring,’ you’ll see hundreds (perhaps thousands—the pages just keep expanding) of colorful ideas for springtime everything: bunnies, door hangings (a great idea showed an umbrella hanging from a front door knocker with a terrifically colorful springtime floral display bursting up out of the inside of the umbrella)… Then, once you click on any image, you are taken to the creator’s page…and that’s likely to show hundreds of other ideas. A lot of them turn out to be commercial sites, but those have often cooked up some of the most creative ideas.
In case you’ve never visited Pinterest, I’d like to apologize in advance to the amount of time it’s likely to devour. Still, when the weather turns foul, and you’re looking for ways to enhance your Rehoboth Beach home, that’s probably a reasonable price to pay. I have a number of other resources if you are thinking of maximizing your property’s appeal for sale (or for you!). Give me a call anytime! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.