Real estate investing is a great way to build wealth continuously. Whether you’re doing it full-time or part-time, there’s no shortage of lucrative opportunities to capitalize on. However, getting into the industry can be daunting to the inexperienced and unsure. Set yourself up for long-term success from the get-go with these simple but effective property investment strategies.
Simple but Smart Investment Strategies
Property investing strategies vary depending on the investor’s aims and focus area. Since you’re only starting out in the industry, it’s best to explore the various sectors of real estate to figure out what’s ideal for your long-term objectives.
In the meantime, take note of the strategies below to kick start your ventures on a high note:
- House Hacking
This involves residing in a place that also generates revenue like a duplex or a house with extra rentable space. It doesn’t have to be a full floor or unit to count. Any spare room that you can rent out will do since it will help cut down your living costs. If your real estate investment plans involve being a landlord, house hacking is a great start-off point.
- Live and Flip
This takes time, but the payoff is usually worth it. Live and Flip involves buying, fixing, and moving into a property, maintaining it for two years or more, then reselling it. Taxes are not a problem if you comply with the Internal Revenue Service (IRS). Join a real estate association to get the lowdown on this strategy from industry experts.
- Live In, Then Rent
This involves residing in a place with the intention of turning it into a rental in the future. “Live In, Then Rent” differs from house hacking in that you are not sharing your home with a tenant.
- Buy and Hold
This one is simple: buy real estate and sell it later once its value has increased. You can either wait for the perfect time to resell the property or improve its interior and exterior to enhance its market value.
Since the return on investment in the “Buy and Hold” strategy is mostly passive, it may not be a good idea to rely solely on it for short-term profits.
- Fix and Flip
This strategy demands time, money, and effort to pull off. The “Fix and Flip” strategy involves purchasing fixer-uppers, conducting the necessary renovations to turn them around, then reselling them at a higher value. Many investors favor this real estate investing strategy not only for its exceptional profit potential but also for the satisfaction that comes with breathing new life to a property.
Set Yourself up for Real Estate Success
Finally, consider becoming a part of a real estate investors association to build up your connections and expand your pool of opportunities. Pick an established organization in your area that’s open to all types of investors. Once you join, maximize your membership benefits. Attend workshops, use property channels, and embrace the chance to meet experts in and out of your real estate field. Lay down solid foundations for long-term success!