INCOME PRODUCING REAL ESTATE
This is about investing in property. I do not count fix and flip as investment. That is a business or in the worst case a job.
To me investment means putting money into asset that either increases in value over time, provides an ongoing income, or preferably both, with limited ongoing effort or cost.
Property is definitely a vehicle that meets that definition.
Over time Real Estate has been shown to increase in value on average around 6% a year. However that number is highly variable. It varies greatly depending on the type of property and the location. Specifically in here in SW Florida the winter is our hot season when all the escapees from the frozen North are in town and are market comes alive.
Similarly with rentals. A good rental investment will return between 7 and 15% on current value depending again on location and type of property, but again local knowledge is needed.
Currently putting leaving money in the bank will get you a fraction of a percent annually on your investment while a good rental property should return between 10 and 20% annually when appreciation and rental income are combined. And remember, if you don't want to be an active landlord there are property managers who for a "small fee" will find and vet tenants, write the lease, collect the rents and manage repairs.
We have many landlords locally who purchased properties in Florida but still remain in their homeland "up North". It's a great way to get in the market here (which is increasing faster than the national rate) before.
If you would like to learn more about income producing real estate in SW Florida please reach out to me using the CONTACT ME page.
For more information on Real Estate investing I have found Think Realty to be a useful resource,