Real Estate investment is probably one of the safest investments you will make, especially if you have selected a great TEAM to work with. There are several strategies in real estate investing and we will discuss the 3 main and most common ones:
- Fix and Flip.- When you buy a property with cash or using an investor loan, then fix it with a General Contractor and sell it for profit. It is advised that your Realtor check the ARV of the house before you buy the property so you can estimate the repairs and potential profit in advanced. (ARV = After Repair Value)
- Buy and hold (short term). – When you buy a property, fix it if necessary and then you rent it out in a short-term rental platform such as Airbnb or vrbo. This strategy is very common for properties close by to tourist attractions such as amusement parks, beaches and event venues. Make sure your Realtor checks in advanced if the property has any restriction for short term rentals before you buy it.
- Buy and hold (long term).- When you buy a property, fix it if necessary and then you rent it out on a yearly basis. This is probably one of the best strategies if you are looking to build equity at the same time as you make a steady passive income. Your Realtor can advise on rental prices in the area once the house is fixed and ready for a tenant.
If you are looking to buy an investment property or you are an investor trying to get the most equity on the sale of your assets, give me a call, I will be happy to assist you.
Clarisa Moody – Realtor
813 446 2003
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