We’ve all likely heard the old saying, “Buy land, because they aren’t making any more of it!” And this is technically true. But when it comes to making the most of your real estate investment dollars, is raw land really the best way to go?
The short answer to that is, not for most investors.
While it is true that land doesn’t require much time, management, or maintenance, this type of investment will also not allow you to receive a steady monthly income in order to offset your expenses. In addition, even if the parcel is appreciating in value, in most cases, it could be many years before you see any type of payoff at all from your investment.
Plus, even if your maintenance costs are low – such as cutting the grass on a regular basis – the time and / or money that you spend will be going out, without any coming back in. So, for many real estate investors, this is not a very profitable model.
Another route to consider is the purchase of rental property. In this case, you will have more overhead to consider, but you will also have a steady income coming in that can help to offset these costs – and that is helping to pay down your mortgage every month.
If you are opposed to the time and effort that it takes for managing and maintaining rental real estate, you can alleviate this issue by hiring an experienced property manager. In doing so, you can essentially delegate the duties of making repairs, collecting monthly rent checks, and any of the other day to day tasks that can in fact take up a fair amount of time – while at the same time still profiting from your investment.
Own rental property in the Orlando or Central Florida, or considering purchasing some? Give us a call and we will walk you through just how easy it can be to be a rental property owner without the need to take on more time consuming tasks.