Investing in real estate can be a highly lucrative business venture that offers a massive return on investment. Many people consider property to be a far safer investment than say stocks or shares, as property typically appreciates over time. You also have the option to increase your profits in several ways. For instance, you can carry out renovations to boost the property value or rent the property to earn an additional source of income. With this in mind, here are the top three ways to make money in real estate.
1. Complete renovations
Property renovations are one of the most popular ways to make money from real estate. This investment strategy involves purchasing a property, then carrying out repairs and improvements to increase the property value before reselling it for a profit. While this can be a reliable way to make money from real estate, you must do plenty of research and plan any renovations carefully to maximize your potential profits. In addition, if you are living in Virginia and your property is ready for reselling, try to approach Virginia Real Estate & Homes For Sale for more info and ideas.
Experts advise purchasing the worst property you can find in the best location. Remember that you can completely renovate a property, but you can’t make a location more desirable to potential buyers. Make sure that you’re realistic with your budget and set an attainable timeline to complete renovation work. You also need to consider any additional costs, such as labor fees, insurance, advertising, and equipment. For instance, you’re likely to require scaffolding if you’re planning any renovations that require working at height, i.e., improvements to the exterior of the property. In that case, you may want to consider purchasing scaffolding to further increase your investment. Experts at Global Scaffold offer plenty of useful advice on the cost-saving benefits of purchasing scaffolding over renting equipment at https://globalscaffold.com.au/.
2. Rent the property
If you own a second property or have a spare room in your home, then you should consider renting this out to earn a second income. Fortunately, renting a property is now relatively simple with websites like Airbnb. This platform allows you to set up an account and list your property online to find potential tenants. You have the option to rent your property long-term or offer it on a short-term basis. Airbnb rentals have become increasingly popular over the years as travelers look for comfortable alternatives to hotels and guesthouses. For that reason, Airbnb has become one of the easiest and most effective ways to make money from real estate.
However, it’s important to note that being a landlord is not always easy. If you’re planning on renting a property, then you must create a detailed property management plan and educate yourself on the relevant landlord rules and regulations.
3. Try house hacking
House hacking can be a highly profitable investment strategy. It involves purchasing a large property and then renting different parts of it out on separate rental leases. Ideally, investors should purchase a multi-family home so they can live in a section of it. They can then rent the remaining parts out to cover living expenses and earn a passive income. Many investors use the money they make from house hacking to purchase a second investment property and build their real estate portfolio. There is plenty of useful advice and guidance available on house hacking and what is involved.
