Investing in real estate can be a great way to earn some extra money for yourself. You can put the money that you make from real estate into a retirement fund, your children’s education or another important life expense. Here are three ways to invest your money in real estate that could pay off handsomely in the end:
Buy a Family Rental Home
Whether you want to purchase a single home or multiple houses to rent out to tenants, investing in a rental property is one of the best ways to earn continuous income. You can choose to rent to families on a short- or long-term basis. It’s important to establish rental terms with your tenants and specify these rules in a lease or other type of agreement. As the landlord, you’ll also likely have an array of financial and legal responsibilities.
If you have the finances, you can purchase an apartment building with multiple units that can be rented to tenants. There are also apartment units that are spread out on larger plots of land to give tenants more privacy. Again, you’ll likely have myriad responsibilities as the owner. You might need to hire a maintenance person and other workers, and you’ll also likely have to deal with people moving in and out on a frequent basis. That said, rental apartments provide some of the surest forms of steady income.
House flipping involves purchasing old homes that are often dilapidated and need a lot of work to become habitable again, and then doing the necessary improvements to make them livable and salable. You can cash in on a major profit if you perform the right upgrades. In addition to the house itself, you’ll also likely need to invest money into having the yard landscaped and cleaned so that the property is more presentable to potential buyers.
Investing your money wisely into the right types of properties can help secure your future for the long term. However, becoming a real estate investor often requires healthy finances, big responsibilities and hard work, among other things. Consult a financial advisor and real estate agent to help determine if real estate investment is right for you.
Source: Meghan Belnap/RISMedia’s Housecall