Real Estate Investing Why Invest? Advantages & Disadvantages An Investment Personality Long Term or Short Term Maintaining Renting and Renters Finding Tenants Choosing Tenants Keeping Tenants Turning for Profit  Contact Us	Find Homes at Bargain.com Real Estate Investing: Long Term or Short Term One of the first decisions you will need to make when considering any property is whether it will be designated as a short term or long term investment. Are your intentions to purchase a property, repair or improve it, and then make a quick sale? Or do you intend to keep the property, rent it, and go for the long term investment potential? Obviously, the return on investment in a short term is quicker, and the rate will be higher due to the short time of the exposure. There are, however some risks associated with a short term investment. What if the property requires more work (and money invested) than expected? What if you are not able to sell it quickly? In situations such as these, your potential profit could be severely limited. Short Term Long Term The property is in an area where property values are stable but not significantly increasing. The long term appreciation rate looks favorable. You have the means or the connections for getting repairs done at a reasonable price. You do not shy away from the idea of dealing with renters. You are organized enough (and have enough time) to rehabilitate the property quickly. You do not have the funds available to do a full scale "fix and turn." Your tax situation can withstand a possible capital gains "hit." You need a continuing tax break. Which better fits your needs and wants? Short term? See Turning for Profit. Long term? See Renting and Renters.
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