Have you ever been worried about paying all your bills on time or having enough money for an emergency fund? Are you dissatisfied with the number in your savings account as you think about retirement planning? Maybe you wish you could travel more but it is just too expensive. Worrying about money is not an uncommon behavior.
Putting yourself in a better financial position takes work. If your primary job is not providing enough income to meet your goals, then it may be time to consider some extra sources of money. One of those sources could be one of the following real estate investment strategies.
Property is an important asset to have if you want to improve your financial status. Many of the world’s wealthiest individuals built up impressive portfolios that contributed to their immense income streams. Though you may not become a millionaire through investing in real estate, there are certainly some real estate investment strategies that can help you generate some extra money.
Real Estate Investment Trust
When it comes to real estate investment strategies it is best to start small and work your way up. If you do not have a lot of money to invest upfront, you might think that it is impossible to generate much from properties. After all, you cannot afford to buy one, so how can you make money? The answer is a real estate investment trust or REIT.
REIT is a fund that is managed by a firm that understands the real estate industry. Numerous investors like yourself can put a little money into the trust and then the firm uses that money to invest in various properties to build a diverse portfolio.
Over time, these properties generate returns that are paid out to investors through dividends. This is the perfect strategy to get started in the world of real estate investing, as little work is required on your part.
Renting Out Part of Your Home
Another option in real estate investment strategies is to rent out part of your current home. If you have a large enough home right now, then you could turn part of it into a revenue stream. Renting is a very popular option for those seeking living spaces, especially if they are students or young professionals.
Perhaps you have a portion of the house with a separate entrance that could be turned into a studio apartment. Maybe your finished basement is fully equipped to handle another resident. The only investment required would be some updates to prepare the space and a few legal processes to be a landlord.
Then, you can find a tenant and start collecting rent payments to help fund your next vacation or retirement savings.
Purchase a Log Cabin
Many travelers enjoy the idea of a simpler life when they go on vacation. They want to immerse themselves in a more rustic experience and get in touch with the great outdoors. If you own a decent chunk of land, investing in park model homes for sale could be a great way to take advantage of vacation rental income.
These mobile log cabins are turnkey ready and could be a great way to let travelers enjoy an escape from the busyness of modern life. These little homes are small enough to be affordable but are considered RVs, so you don’t even have to worry about property taxes.
Invest in a Single-Family Home to Rent
The next step up in real estate investment strategies is investing in a larger residential property. Many long-term tenants look for single-family homes to rent, especially if they lead mobile lifestyles or are unwilling to commit to a mortgage.
If you live in a desirable location, then seeking out long-term tenants for your single-family home investment could generate extra income, even after you consider expenses like the mortgage, utilities, taxes, and insurance.
Younger generations are more hesitant to buy than ever, so you could take advantage of a favorable rental market with a home in a good location.
Purchase Commercial Property
Another option in real estate investment strategies involves commercial properties. A commercial property investment is typically used to rent out to business tenants. Often, these properties house multiple businesses, so you can collect rent from several different companies.
Owning a business property is a little more complex and expensive, so make sure you have the resources and knowledge required to manage this type of property before jumping in. However, the profits can be much higher.
What Level of Real Estate Investment Can You Handle?
As you can see, when it comes to real estate investment strategies there are multiple paths to wealth generation. You can start small by investing in a real estate trust or you can jump in feet first by purchasing a rental property. Either way, owning property can be a source of income if you know what you are doing and understand how the market works.