Women are starting to understand that investing in real estate can be both lucrative and rewarding. Whether you’re in it for the long haul and are looking to buy and hold property, or you want the immediate cash flow of buying and flipping, there are many ways to start building wealth by buying property.
Before you jump in, you’ll want to find the strategy or strategies that work for you. But first, you need an understanding of the different ways that investing in real estate can increase your net worth. We’re covering the top four in this article.
buy and rent
If your goal is to create immediate cash flow and build long-term wealth (through equity and appreciation), buying property to rent might be the option for you. Look for properties that are priced below market and need minimal repair and improvements. By doing so you reduce your initial out of pocket and lower your financial risk.
Once the property is tenant-ready you’ll want to be prepared for managing your investment. If you’re not interested in constant interaction with the tenants and you want to focus on accumulating property more than the daily management tasks, find a reputable property management company like OpulentRE.com to handle it for you.
renovate to sell for profit
If the idea of a quick turnaround and immediate financial gratification appeal to you, you may want to flip property. Flipping is a little different than buying to rent. When you buy to rent your focus is to get the property tenant-ready. But, when you’re flipping a home, it requires more extensive renovating. You’ll be buying diamonds in the rough – the type of home that a typical buyer would avoid. The goal is to find a potential money maker, improve and upgrade the property to attract buyers, and sell quickly. Your initial costs will be greater so there’s also a greater risk, but there’s also greater financial reward.
Tip: Know your numbers! How much will you need to invest and for what potential return? Be sure it’s worth it. You’ll also want a strong approximation on how long the home will be vacant to calculate potential holding costs. Remember this, when flipping a home all expenses (planned and unexpected) cut into your potential profit.
short-term and vacation rentals
If you want to generate ongoing income from your properties but aren’t interested in long-term tenants, you’ll want to consider short-term and vacation renting. It’s an excellent way to make the most of a rental income, but you’ll need to have properties that appeal to a broad range of travelers.
Register your properties on websites like AirBNB.com and innclusive.com to attract temporary tenants. Be sure to focus on the overall aesthetic of the property. From the interior to the landscaping the best way to attract vacationers is to have your homes professionally decorated and well-kept.
rezone the property
How many times have you seen a house that would make a great business location or a converted residential space that would be a perfect home once again? These are the type of properties that could mean big money for you. If the price is right, consider purchasing the property and having it rezoned to maximize your potential return. Sure, there’s paperwork involved and you’ll want to speak with your local zoning office ahead of time, to make sure that this option is even possible. If it is, finding and rezoning property can be a very lucrative option for you.