Real estate has proven to be a lucrative investment for many people. There are many different ways to make extra income with real estate. There are also many different ways to lose money in the real estate investment game. We believe the results rely largely on doing your homework to find the right investment for you.
Here are a few things to consider to help you get started exploring the world of real estate investments.
CONSIDER THE PROPERTY:
The property is always the most important consideration. Some properties are prime for investment and could be used in different ways. Maybe it’s the flexible living spaces. Maybe it’s the budget. Maybe it’s the location or the neighborhood.
This Malibu beach bungalow style duplex is a rare little Plaza Midwood cutie and a good example of a property that could be used in different ways.
Duplex. We know it’s not the sexiest term in the English language. But think of the possibilities. Want an Airbnb? Perfect. This gives you two options to double your income. A traditional rental? Sure. Rent both sides. With two rents you’ll have extra income after the mortgage.
Live on one side and rent the other? Just one rent would pay your mortgage.
You could also share it with a family member and hold on to the escalating value.
The location couldn’t be better and it was just reduced to $409,000.
This is one of the most common real estate investments. After all, people always need a place to live. The concept is simple, you buy a house and rent it out long term. One of the considerations with rental properties is whether you are going to manage the property or have someone else take care of it, reducing the cost you earn from the property but potentially reducing headaches dealing with issues as well.
This 5 Points listing would make a great rental. The multi-family home is a new construction craftsman condo in Historic Biddleville, close to the LYNX line. The best part is the HOA takes care of the lawn for you, so that’s one thing off your list!
It’s a very interesting property that you don’t see everyday. Call us if you want to discuss it.
RENT OUT A ROOM:
This option allows you to test the water without a long term commitment. It’s also a way to earn cash from your investment without needing cash to get started. Obviously this will mean you will have someone living with you which may or may not work for you personality and lifestyle. Renting out a room is one way some folks test the Airbnb waters.
This strategy involves buying an underpriced home in need of renovations, making the renovations that improve the value of the home, and then reselling it at a profit. This trend became so popular it gave way to a whole new kind of TV programming. But if you don’t know what you are doing it could backfire and you could end up paying more than you bargained for. Here are a few do’s and don’t that could make or break a flipping deal.
This investment works best in highly sought after tourist locations known for having a high demand for short term stays. As the investor, you get the added benefit of having use of the property for your own vacations. These homes can be very lucrative but they can also require a larger investment or pricey updates and additional amenities.
Real estate investing can help you diversity your financial portfolio, add a revenue stream or just fulfill that HGTV host hidden inside of you but it’s not a decision to take lightly. Any of our agents would be happy to share our information regarding the availability of particular properties, market insight, and walk you through some of the pros and cons.
NOTE: Call it a win if you pay fair market value for property in Charlotte. Fair market value v. over market value. “Investment Property” carries a bit of an assumption that the property will also be a steal for the investor/buyer. If you are in the market for any property in Charlotte you know it’s extremely competitive and very much a seller’s market. There are many buyers of all kinds competing for the same low inventory. Consider yourself lucky if you get any property for just asking and don’t have to over-pay. Don’t worry your investment will go up. In the meantime; plan to purchase and hold your investment. You will be making money while you own. The longer you hold the more your investment will be worth when you go to sell. Win. Win.