Have you been considering investing in real estate but don’t know which route is the best fit? Contrary to popular belief, there are many different ways for women to make money in real estate. If you’re ready to take the dive, here are four investment methods to consider.
The most talked about and common way to profit from investing in property is by becoming a landlord. Many women shy away from owning and renting out property because of horror stories they’ve heard or not wanting to deal directly with tenants. However, being a landlord can be a very lucrative investment.
The secret to success as a landlord is buying the right property and finding good tenants.
Think about it this way, the rental revenue generated from the tenants will pay off the mortgage on the property and provide monthly income for you. In addition, once the property is paid off you not only own the asset but the full amount of the rental revenue becomes additional monthly income for you.
tip: If you don’t want to deal with the day to day operations of owning the property, find a reputable property management company like Bay Management Group. Management companies will screen and secure tenants for your property and handle rent collection and repair request.
If you want to maximize your income and take advantage of the benefits of owning investment property, but want to avoid long-term contracts, consider purchasing property to rent on a temporary/vacation stay basis. Sites like AirBnb allow you to list and rent your home (or even a room) on a day-to-day basis. Since this works much like hotel accommodations you’re able to generate more income than a flat monthly fee from a long-term renter.
For example, if you purchase a two bedroom condo and can rent it to a long-term tenant for $1,000 month – that same condo may be able to rent for $125 a night. If you’re able to rent it for just 15 days a month, you’ll generate $1875.
There can be additional up-front costs when setting up a temporary rental. You will need to fully furnish and decorate the space. You’ll also have the responibility of ensuring that it stays clean and well maintained at all times.
flipping for profit
If you’ve watched HGTV, then you’re probably familiar with this concept. Flipping a property is when you purchase a property below market value, that often needs repair. You’ll renovate and improve the home and sell it for a higher price based on it’s improved value. The secret is to spend as little money as possible while increasing the value. Many investors use sites like Repolist to identify potential properties – many of which have been foreclosed on. This investment strategy is riskier than the others but it also presents the potential for the most immediate profit.
An often ignored buy-to-let option is commercial leasing. It’s a similar concept to leasing residential property. The difference is that you’ll be dealing directly with businesses. But this strategy can also be less risky (long-term) for you.
Here’s why: commercial leases often require the business that is leasing the property to maintain and improve it. Commercial leases are also generally long-term leases with built-in rent increases. Before you decide to purchase commercial property, do your research. Talk thoroughly with a local commercial real estate expert and discuss financing, high-traffic locations, potential occupancy, and potential profit.