Whether done over the course of weeks or decades, buying and later reselling a piece of property can prove to be a highly profitable venture if done right. Property values in hot real estate markets such as that of the San Diego area, consistently increase year after year, meaning that virtually any piece of property can later be resold at a profit even if no upgrades have been made. Homes and other property are sometimes bought with the intention of being fixed up later sold at a nice profit in what is referred to as “flipping”.
Purchasing single-family homes, residential buildings, commercial buildings, or other space to rent out to tenants can be a very smart long-term investment. When rented out, these properties become a steady source of revenue for their owners. Unlike buying and selling property, where the payoff usually comes in the form of a single lump sum, the income generated by rental property, typically in the form of monthly rent payments, must add up gradually over time before rental property owners can begin to see a return on their investment.