Do you have some extra cash sitting around? Did you recently come into an inheritance? Or, do you want to reevaluate an existing investment strategy?
All of these are great reasons to consider real estate investing. With a market steadily rising in value and the potential for passive income, real estate is one of the best assets to place your money in.
Are you new to real estate investing? Here is a brief beginner guide to navigating everything from property management to unexpected expenses.
Hire a Property Management Company
If you are immediately overwhelmed or you simply want a hands-off solution to managing your investment portfolio, a property management company is a good option.
They can take care of your day-to-day maintenance, as well as tasks like tenant screening, eviction coordination, and ensuring that tenants pay their rent on time.
The biggest advantage of a property management company is that you don't have to be in the area, or even live there, to invest in real estate. You can instead have a third party take care of all of that on your behalf. This frees up your time and energy to invest in real estate all over the country.
Build a Diverse Portfolio
Diversifying your portfolio is key to long-term passive income and having a safety net. You don't want to wrap up all of your assets into one property or asset type.
Consider investing in REITs, or real estate investment trusts. You can also buy different types of physical properties. Going into a larger building with multiple owners is a popular option as well.
Short-Term or Long-Term Investments
Decide how quickly you want to see gains from your property investments. If you can buy another property without taking out a mortgage, the rental income every month will just contribute to your passive income.
However, it may take longer to see a profit if you have a mortgage. It should be a goal of yours to be in the black so you can start building a safety net on top of your monthly income.
Flipping homes is a great way to make a profit in as little as a few months. With the right renovations, you could easily make tens of thousands of dollars more than the original asking price of the home.
A good long-term strategy for real estate investing is called buy and hold. This simply means that you buy the property, rent it out, and wait until the value goes up significantly before selling again.
Real Estate Investing Made Easy
You shouldn't feel intimidated dipping your toes into the world of real estate investment. Using this guide and many other resources, you can figure out a strategy that works best for your needs.
Are you ready to begin your investing journey in Orlando, Florida? Verandah Properties is here to help.
With over 20 years of experience in the property management space, we'll equip you with all the tools you need to be in property management. Contact us today to learn more.