It’s no secret that investing in real estate can be very profitable. Real estate is considered a safer investment than stocks and a hedge against inflation. Investors take two approaches to earning money in the real estate market: long-term investing (also known as Buy and Hold) and flipping.
Buy and Hold is just what the name says, an investor purchases a property with the intent of renting it out for more than one year. Buy and hold offers investors a stream of passive income once property management services have been set up. There are several tax advantages that also go along with the buy-and-hold investment method. However, property management can turn into a headache with prolonged vacancies or improper management. There are also many legal issues to consider when deciding to be a landlord. Douglas Realty has property management experts to help keep your rental property occupied, maintained properly, and paid on time.
Flipping houses has become quite popular in recent years due to popular TV shows like Fixer Upper and Property Brothers. Flipping involves finding a property in:
- financial distress, such as foreclosure, short sale, or auction;
- need of renovation or remodeling work, or;
The flipper then fixes the property up and sells it as quickly as possible, capturing a faster profit than the Buy and Hold method. However, flippers often spend 8+ hours per day working on their investments until they’re sold, so it’s hardly a passive income stream. Flippers can also be subject to hide transaction fees and higher capital gains taxes on properties they buy and sell in under one year. Still, people rake in the cash every year, flipping houses.
Whether you want to Buy and Hold or flip houses like a pro, Douglas Realty has the perfect solution for you through our partnership with Caribbean Homes. This collaboration has led to the development of two beautiful floor plans that maximize square footage, control costs, and prioritize quality. View the floor plans at build.douglasrealty.net/invest and see how you can realize high returns on brand new, turnkey properties right here in Southwest Florida.