If you’ve ever watched the late-night informercials that talk about buying and profiting from real estate “in your underwear,” it might seem this type of investing is easy and allows you to just sit back and watch the profits flow in.
But while investment property can certainly be a great way to receive regular cash flow and build your net worth, there are some items to mull over before you take the plunge into landlordism.
For example, unlike stocks and mutual funds, real estate investments are not typically liquid. This means that if you need to access cash, you must either sell the property (and pay off a mortgage, if you have one) or take out a home equity loan or line of credit. Many rental property owners run the risk of bad or destructive tenants, too, and/or those who are either late with the monthly rent check or stop paying their rent altogether.
It is also important to keep in mind that managing and maintaining rental property can be somewhat time-consuming. Even when things are running smoothly, it is necessary to collect rent, make sure that all of the appliances and systems are regularly checked, and find new tenants when the current residents move out. Plus, there is always the possibility of receiving calls from renters saying that the toilet is running, faucets are leaking, or there is exterior damage from a storm.
So, depending on how much time you have available to devote to your real estate investment(s), it may make sense to delegate some or all of the tasks to an experienced property manager.
In doing so, you can focus on other things, while still receiving regular rental income. If you own residential rental property in Orlando and/or the surrounding Central Florida area – or if you plan to soon – give Central Florida Property Management a call at (407) 429-4834 or send us an email with any questions that you may have by going to https://cflpropmanagement.com/contact-us/.