Long term investment properties refer to properties that you buy and plan to maintain to rent out either as a long term rental or short term/vacation rental. This type of investment has the potential to make you more money, but spread over a long period of time. Many people view investment properties as a great way to earn passive income. Passive income means income you earn from a rental property, partnership or other enterprise where you are not actively involved. As real estate prices continue to increase in Southern California, investing in property is seen as a low risk investment.
With the popularity of television shows that showcase “house flippers” and the potential money they can make, flipping houses, or buying and quickly renovating to put back on the market has become more popular. Many see the key to flipping houses is to find a home in a desirable neighborhood that requires mild to moderate updating and renovating. This can be a great way to invest your money with the potential return on investment coming much sooner rather than later. The major hurdle for this type of investment is having a large amount of capital. There are the traditional closing costs and down payment in addition to the costs of renovating.
