You’re probably well aware that there’s more to real estate than just owning your home. There are countless success stories of people who made a fortune—or even just a comfortable extra income—by investing in real estate. Here’s an overview to get you thinking about an investment property.
Improving a home
Quickly flipping a home is one way to make money off a real estate investment, but it can be risky. A safer play is to buy a fixer upper and carefully manage costs over a year or so as you improve the property. You’re likely to get a great return.
Instead of selling your investment property, you can rent it and make a good monthly profit if the rent exceeds your costs. Renting to a stable, reliable tenant can put extra money in your pocket every month for years on end. You can even hire a property manager to handle repairs, rent collection, and other administrative tasks. And if you’re ever ready to stop dealing with tenants, you can sell the home and profit on the improvements and appreciation of your asset.
Multi-family rental properties
Renting out a single family home is a good starting place for investment properties, but you can get an even better return once you learn the ropes and move on to multi-family homes. Buying an apartment building or dividing a larger home into several apartment units comes with some added complications with taxes and regulations, but it also comes with huge income potential.