With so many women deciding to increase their net worth through side-hustles or entrepreneurial pursuits, there can be a little confusion as to the best place to begin when you’re ready to do your own thing

A side hustle is a good way to get your feet wet in business without having to quit your job.

Think about it this way: You’re able to maintain the security of your 9-5 while learning the ins and outs of running a business – at your own pace. There’s limited risk for you, so it’s a win-win situation.

One area that women tend to shy away from is real estate investing. While there are pros and cons to all business concepts, being a real estate investor and becoming a landlord might just be the right side hustle for you.

A side hustle is a good way to get your feet wet in business without having to quit your job.Click To Tweet

Let’s look at why your next property might be your pathway to wealth! 


Financing

Some people think that they need to cash out part or all of their retirement savings or even use their home as collateral to purchase an investment property. This is often not the case. You’d be surprised at the number of investment mortgage programs that exist to help you get started.

Unlike most traditional business loans, buying property is solely dependent on your ability to qualify for an investment mortgage loan. And while securing an investment mortgage loan can be a little more difficult to qualify for than your primary home loan, it’s still a lot easier than qualifying for a small business loan.

Remember: I know they make it seem really easy on tv to go it alone with property investing. But if you’re a novice to investing in real estate, you’ll definitely want to seek the help of a professional. There are plenty of realtors you could call today to find suitable properties in your area. Be sure that the one you choose has experience with real estate investment deals. 


Property Appreciation 

In most cases, property values appreciate over time. When the economy is booming, your investment can double in just a few years time. There are not many investments capable of those types of returns.

If you are looking to grow your net worth and potentially have your tenants pay off the property for you, then you’re going to have to be open to being a landlord. And if you’ve decided that the buy-to-let approach is for you, then the next step is to make sure that you understand the general pros and cons involved with owning and managing your investment properties.

{***This list is not all-inclusive, but it should give you a few things to consider before taking the leap.}

Pros:

  • property values increase, thus increasing your net worth
  • the ability to leverage the equity from the 1st property to purchase additional properties
  • long-term tenants could potentially pay off the mortgage for you – leaving you owning the investment free and clear (so all future rents or sale proceeds are profit for you)
  • if you purchase low, you will profit (even if just a little) from tenant monthly rent payments
  • tax deductions (too many to list)

Cons:

  • holding costs – the costs you incur while finding a proper tenant or doing renovations to the property (these usually include: mortgage payments, repair costs, utility costs… etc)
  • the money pit – if you don’t do due diligence on the property (and sometimes even if you do) you could end up purchasing a property that needs so much work that you’re putting in more than what it’s worth – be careful and always have a thorough property inspection
  • unreliable tenants – if your tenant’s don’t pay on time or at all, you’re still responsible for the mortgage payment
  • property damage – outside of the security deposit your tenant provides at the time that they rent the property from you, you’ll be out of pocket the costs of any damage that they do to the property (although you may be able to recoup some costs in court but don’t rely on it)
  • a down economy – in general, if you’re renting your investment property you will be able to weather a downturn in the economy and the corresponding property values with your monthly rent payments. But you may not be able to unload the property and maximize your profits. You’ll want to wait until things start to correct, to protect your returns on investment.

Long-term wealth plan

If you’re looking to build long-term wealth, owning investment properties might be perfect for you. You’ll want to build a portfolio of properties that are increasing in value. Then, find and secure dependable tenants. Once you’ve done that, you want to be ready to start searching for your next property – and geared up to do it all over again. Your net worth will increase and so will your monthly income but most of all your properties will increase in value over time, helping you to acquire massive wealth in the process. 

While owning property is not always an easy side hustle, it can be a very lucrative one. Be sure that you do your due diligence on each property – know the best places to buy, what areas are up and coming, and choose properties that don’t require a lot of out of pocket to get them ready to rent. And always have a realtor that specializes in investment transactions in your back pocket.

Tip: Here are three books that I highly recommend that will help you get mentally prepared to jump into real estate investing:

Rich Dad Poor Dad

The Millionaire Real Estate Investor

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While owning property is not always an easy side hustle, it can be a very lucrative one.Click To Tweet