Every house has the potential to become a dream home! Thanks to popular television shows today, more people are realizing that fixer uppers may be more cost effective and less time consuming than building a house from the ground up. Fixer uppers also present an opportunity to turn a profit: improving a home and flipping it for resale has been a successful strategy for many Eastern Shore investors.
Eastern Shore real estate is one of the best markets for flipping houses because there are so many great structural homes built on prime land along the water, near the beaches and in growing towns. There are countless reasons to fix up a home in Maryland; whether it’s to design your own kitchen with a few changes, save money on land or take your time while living in the home. But the biggest reason is to flip the house as an investment property.
Not only can you make significant returns on your investment by house flipping on the Eastern Shore, you can do it relatively fast if there are no major setbacks. We recommend working with a good inspector before you purchase the house to make sure there isn’t significant damage, and working with a good contractor during the flipping process. (Contact us for recommendations on local inspectors and contractors).
Most companies or people who flip homes as a business suggest that you focus on the neighborhood where the house is located as much as you focus on the features of the house itself. Luckily for you, most real estate on the Eastern Shore is in good neighborhoods within 30 minutes of a body of water! Couples are moving here more now than ever to raise their children and retire because of the quiet rural lifestyle and safe, family-friendly environment.
Another reason flipping homes on the Eastern Shore is a good investment is because the cost of buying a house is less expensive compared to other areas of Maryland, Delaware, Virginia and Pennsylvania. The Eastern Shore is becoming a popular destination for commuters working in Annapolis, Baltimore and D.C. When fixing up a house to sell, you want a house to which you can add value and sell for more than you spent. The value will continue to increase for Eastern Shore homes as more families choose to move here to raise their families and drive further for work.
If you’ve got access to cash, good credit and the will to put in the hard work, fixing up houses to sell as investments can be a smart strategic move. The best part about this process is that the more homes you flip, the more familiar you become with construction costs, design trends and reliable contractors, and the easier it becomes.
Not sure where to start on buying a house to flip? We can help! It’s important to discuss the details with experts regarding which improvements to make depending on the value of surrounding homes, the age of appliances, the outdated features, etc.
With access to numerous listings, local home design and appliance businesses, and the knowledge of what buyers are looking for in certain areas, you can’t go wrong with our team at Powell Realtors. Contact us today to find your first fixer upper or house to flip for investment!
The increase in Americans renting homes today is undeniable. Investing in rental properties can be very economical for homeowners for many reasons. Not only can rental properties help accumulate long-term wealth, they also prepare a financially stable future and diversify investment portfolios.
According to Trulia, there has been a significant increase in the number of Americans who rent their homes in the last 10 years. A recent report examines growth in renting versus owning across the U.S., as well as the rise in rental housing prices between 2006 and 2014. Because increasing student loans are making qualifying for a mortgage more difficult, the demand for rental properties will only grow over time.
The Eastern Shore is going through a bit of a renaissance in many towns with new people moving in and renting homes. There’s a high demand for downtown housing that’s close to restaurants, shops and the water, so it’s the perfect time to make a real estate investment. Eastern Shore real estate is booming when it comes to rentals, and we know the benefits.
We’ve gathered the top 5 reasons you should invest in rental properties on Maryland’s Eastern Shore:
Unlike the latest tech trend or start-up company, real estate is an investment that will last. The beauty of rental properties is that people will always need a place to live, so the demand will never end. And we know from experience that most people who come to the Eastern Shore immediately feel at “home” and choose to stay to raise families and enjoy the rural lifestyle.
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” Franklin D. Roosevelt
2. Tax Benefits
Renting out your home has numerous tax benefits. You can write off the interest on your mortgage or credit cards with property purchases, insurance, maintenance costs, travel expenses and even property taxes as a rental property owner. In the midst of Tax Season right now, think of how great it would be to write some of those things off!
As long as your rental property is occupied with tenants, you can receive a steady stream of income while also paying down your mortgage. You’re your own boss. You get to choose which property to invest in, which tenants you will rent to, how much you will charge for rent, and how you’ll manage the property as a whole. Plus you don’t have to be present all the time to make money!
You can use a bank loan or private lending to purchase a property and increase the potential return. You don’t need 100% of the property purchase price (wow, say that 3 times fast!) to buy it, allowing you to buy more than you could in stocks or other investments. Your time and abilities can also be leveraged to make the home or property as nice as you want, increasing the rental price!
5. Easy to Begin
It’s not very difficult to turn your home or property into a rental, especially if you consult with a real estate agent. We can walk you through how to price your property and write a lease. We can also recommend property managers if you’d rather not be the landlord, and we even help you find potential tenants!
If you’re interested in purchasing a home or making yours a rental, shoot us a message or give us a call at 410-228-9333!