If you are looking for an alternative source of income outside of your 9-5, real estate investing is a great option to consider. No matter your level of experience or background, real estate can be a profitable side-hustle or even a principal source of income.
In this article, we will discuss what you need to know about residential real estate investments and how you can use it to make money and achieve financial freedom.
Is real estate a good investment?
In many ways, real estate is a better investment than stocks and bonds. It offers more options and flexibility, and it’s a way to build your own business on your terms. Because people will always need a place to live, there is an inherent demand for real estate that makes it safer than most other investments. Not to mention the tax benefits and write-offs you get to take advantage of.
How to make money with residential real estate investments
Choose a healthy market
Real estate is a great way to make money, but that doesn’t mean every property is a great investment. You will want to choose a property in a location with a healthy market. See how an area compares to other markets and research employment statistics and general economic performance.
Find the up and coming city
Pick a city where people are moving. If the population is on a downward trend, then that’s your sign to move on. You want to be where people are moving for work, where they are vacationing, and where they are raising their families.
Options for residential real estate investments
Buy and rent – short term
Vacation rentals, Airbnb, and VRBOs can yield very high returns, more than long-term rentals. You can write off many expenses to run this business and control when, how, and to whom you rent more easily. It’s up to you how you run this, meaning you can hire cleaners or a property manager to take care of the maintenance in between guests.
Buy and rent – long term
Renting out in the long term is a great way to secure a passive, residual income. There are several tax advantages with any rental property, and similarly to a short-term rental, you can hire others to manage the property or do it yourself. You have a more dependable cash flow with long-term rentals, and the property will most likely increase in value over time.
House flipping
With house flipping, you buy a distressed property at a low price. You make all necessary repairs and renovations and then sell for a profit, or use it as a rental. These typically have high rates of return and can be a fulfilling project for many.
Buy a foreclosed property
A foreclosed property is one whose title has been taken over by the lender because the homeowner has failed to pay their mortgage. This is a way for you to buy a quality property at a lower price. From here, you can turn it into a rental or flip and sell.
Intro to Real Estate
If you are interested in learning more about real estate investing, consider our team’s real estate education courses. We know firsthand the freedom and possibilities real estate investing offers, and we want to share what we know.
Our courses are for those looking to leave their 9-5 in pursuit of something more fulfilling, no matter their prior experience or learning style. We use real-life investing scenarios to effectively equip our students with the tools they need to succeed.
If you are ready to invest in your future, start by investing in your education. Click here to contact us today.