Real estate investing in Central Florida is an excellent way to make your fortune in 2020. Of course, it isn’t as easy as simply buying the first property you see and expecting it to sell for a lucrative amount. But there are certain methods that you can adopt in order to make your first investing experience a rewarding one.
The Fix and Flip
One of the most popular and effective styles of real estate investing in Central Florida is the fix and flip. In fact, flipping homes have recently become more profitable than ever before.
A recent report found that flipping homes in the first quarter of 2016 led to an average gross profit of $58,250. This figure represented the highest average gross profit for flipping homes since the fourth quarter of 2005. And there is no reason to believe that 2020 will be any less lucrative.
Another interesting statistic quoted in studies shows that people who flipped homes were able to post returns of nearly 50 percent. This number represents an amazing level of profit in a very short amount of time. With this kind of potential profit as an incentive, it’s not hard to see why home flipping is so popular.
What Are the Advantages of Home Flipping?
One of the biggest advantages of home flipping is the fact that you can buy a low-value property for a correspondingly low price. Once the property is yours, you can proceed to make the minimum number of necessary renovations that will make it safe to inhabit. By doing so, you will naturally also raise the resale value of the home.
This means that you can easily sell the home for a profit. You can give yourself an even greater guarantee of raising your profit margin as high as possible by buying a home at a foreclosure sale. This is the place where homes are usually sold at well under their normal market value. It’s your opportunity to score a huge bargain.
Another important advantage of house flipping is that it’s fast. You can buy the home, quickly renovate it, put it out there on the market, and generally be done with the entire process in a matter of months. It’s a fast and easy process that generates big bucks and allows you to set up for the next big score in a short amount of time.
Making Money from Renting Out Your Property
The other traditional method of making money from a property is to rent it out. Did you know that the median price of rent is rising faster than home prices in 45 percent of all markets? This means that, in the very near future, renting will become a very lucrative source of income that more and more people will want to try their hand at.
It all comes down to being able to net yourself a continuous stream of passive income. Since median rents are rising all over the country, this shouldn’t prove to be too hard. If you can find a property that is easy to renovate and easy to maintain, you will be able to hold it as a long term source of income for many more years to come.
Of course, there are certain potential hazards that you will need to look out for. You will need to make sure that the cost of maintenance on your property doesn’t outweigh the potential profits that you can derive from owning it over the course of several years.
You will also need to make sure that you always rent to the highest possible caliber of tenants. You don’t want tenants who annoy the neighbors with continuous wild parties that can also cause damage to your property. It’s always important to screen your potential tenants very carefully so that they don’t end up causing you headaches.
What Are the Advantages of Owning a Rental Property?
The main advantage that comes with owning a rental property should be obvious. It’s a continuous stream of income that depends on nothing but your being able to continue renting out the property that you own. As long as you keep it in good shape, there will be no lack of people lining up to rent it from you.
The other advantage is that the price of rent keeps increasing all over the country. This is especially good news in Central Florida, where the price of rent has always been higher than average. If you can manage to secure a property for a decent price, you can expect to clean up.
The final thing to keep in mind is that both flipping and renting are excellent sources of long term income. The real estate market in Central Florida is a great place to earn excellent supplemental income.