If you’re like most real estate investors, you are probably already well aware that property can provide an ideal way to earn money without having the “trade hours for dollars.” But there are actually several different ways that you can structure how you receive your real estate-related income, some which may be more efficient than others if you are seeking a way to earn a long-term passive cash flow.
For example, many investors have looked for a quick return by purchasing property, doing a swift remodel, and then turning around and “flipping” the investment for a one-time profit. Yet, while this can certainly be lucrative, it also requires investors to repeat the process over and over again in order to keep cash flowing in.
Alternatively, by purchasing property and renting it out – especially if you do so with longer-term lease agreements – you can count on a regular, ongoing income. And, while the money you receive on a monthly (or annual) basis may pale in comparison to the immediate profit that could be made doing a “flip,” there are actually several reasons why going the route of rental property can end up to be much more beneficial in the end.
For instance, many investors are able to replace the wages that they would otherwise have to work for someone else to receive. This alone can free up time that you can then choose to spend doing other things.
In addition, with someone else essentially paying down your mortgage balance, you can also build up equity in your property (or properties) without having to use any of your own funds. Plus, as the value of property in Orlando continues to rise, you could end up selling your real estate investments for far more in the future than you could if you flipped them right away.
Don’t have time to manage tenants or property maintenance?
No problem. You can turn those duties over to a professional property manager – while still reaping the benefits of investment real estate ownership. For more information on how you can benefit by partnering with a professional property manager in the Orlando and surrounding Central Florida area, give us a call today.