Are you looking to build your wealth? Consider real estate. This is just one of the investment opportunities open to you, and while there are risks attached (as with any type of investment), there is the possibility for great rewards too!
We have already discussed ways in which to find investment properties on our site, but what should you do with the property when you have bought it? Well, there are a number of opportunities open to you, and these include the following.
#1: Become a landlord
People will always need a place to live, but not everybody is willing or able to buy a place of their own. This is why the rental market is booming, so if you want to make money from your property, you could become a landlord. Of course, location is everything. You do need to buy in an area that people are likely to move into. Vetting your prospective tenants is also important, as you don’t want to rent your property out to people who might leave it in a state of disarray. Health and safety is also key, as it will be your duty to ensure that your property is fit to live in. Keep these things in mind and you might find success in this area, with a constant stream of cash coming in to pay off the second mortgage you will have acquired. Check out our tips for first-time landlords for more advice.
#2: Rent your property to holidaymakers
You can make a sizable side hustle income from a vacation rental, and you could even live in the property too after the holiday season is over! Again, location is important as you do need to buy a property in a town or city that people will choose for their holiday destination. You will also need to market your property on popular vacation listing websites, such as Airbnb or HomeAway. As you might be living some distance away from your vacation rental, you might want to install some form of guest monitoring in the property too, although you will need to opt for something like this Airbnb noise detector rather than anything that will deprive them of their privacy. In theory, you could make a lot of money if the location is desirable and the property is fit to live in, so commit to more research online if this interests you.
#3: Renovate and sell for a profit
Also known as fixing and flipping, this is another way to make money from your real estate property. The process seems relatively straightforward – buy a cheap fixer-upper, renovate it to raise its value, sell it to a buyer for a profit – although there are pitfalls. You will need to make a ton of repairs for starters, so it can be costly. There is also the possibility that you will find no buyers. Still, you can counter this by being diligent in the house buying process. Work with a home inspector so you can assess how much repairs might cost, and choose ugly homes in nicer neighbourhoods to improve your chances of finding a buyer. There are risks, but if you do your homework, you can reduce them.
These are just some of the ways to make money from a real estate property, although there are other avenues you could take. A quick Google search online will tell you all you need to know. So, consider the options open to you, as you could make a fortune if you’re wise with your real estate investments.