3 Ways to make money in Real Estate

3 Ways to make money in Real Estate

1). To Buy and Hold is the most popular investment strategy for residential real estate. You can buy a property and wait until it appreciates, or you could rent it out to tenants.

You can also live in the property and rent out rooms in your house (a great way to collect extra money for the mortgage payment), or if you own a multi-family home, you can live in one unit and rent out the others.

When you rent out a property to tenants, you’ll become the landlord of the property. You’ll have several landlord obligations to fulfill, including hiring contractors to do maintenance tasks when needed.

If you’re only trying to develop a passive income, you might opt to hire a property management company to manage your properties. Most property management companies will charge between 8-10% of your monthly rental income, but they’re a godsend for investors who are too busy to handle landlord duties or screen new tenants.

2). House Flipping has become one of the most exciting types of real estate investments—hence the large number of HGTV shows dedicated to them.

Fix-to-flip investment is when you purchase a run-down or low-valued property.  You renovate quickly, and then you sell it for a profit.

You can generate significant returns with a successful house flip, but they’re challenging and not always suitable for beginning investors. You need to have a good sense of how much renovations will cost (the higher the renovation cost, the lower your profit margin) and how much those renovations will affect the home value.

3). Vacation rentals are more popular than ever, thanks to websites like Airbnb & VRBO. These properties can be tremendously lucrative investments, even when you’ve accounted for cleaning costs and website commissions.

It’s important to know that short-term rentals are being increasingly regulated, primarily due to the escalating housing crisis.  Many provinces and local governments are apprehensive about properties being held as vacation rentals, rather than being used for long-term housing.

Please contact me with any Real Estate investment opportunities that you are interested in.  I would love to be of assistance to help you reach your real estate goals.


No comments

Post Your Comment:

Your email will not be published
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.