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6 Types of Real Estate Investments You Shouldn’t Miss Out On

Real estate is an investment with many facets to consider. Most people believe that only those with a lot of money can invest in real estate. Truthfully, investors from all walks of life can dip their toes in the market. Of course, it’s always a good idea to get the help of a professional when you’re starting out. The truth is that there are many investment options with low input. They might not generate as big of an ROI, but they can be a great starting point. Just like any other investment, there’s no guarantee when it comes to real estate. However, the great thing about real estate is that it’s an asset that can always be sold. Real estate is usually relatively reliable. It can hold its value and increase over time as well. Let’s learn about six real estate investments you shouldn’t miss out on.

1. Fix-And-Flip

If you have followed up on the recent boom in the popularity of DIY shows, you know how popular this kind of investment is. The gist of it is that you purchase a run-down house at a very low fare and then work to turn it into a dream home. The reality of fix and flip investing looks a little bit different than what the big reality TV productions like to show you. However, the impact can be just as, if not even more, amazing. A thing to keep in mind is that this type of real estate investment does still require you to buy a home. One that you can then renovate and repair to re-sell. 

A home that needs a major remodel
Flipping homes has recently become one of the most interesting investments you shouldn’t miss out on.

There are many ways you can approach this job. If you consider yourself handy enough, you can always do most of the work yourself. But, you can also decide to hire out for the entire job. You should base this decision on three main things:

  1. your level of comfort with construction work,
  2. your expertise and experience with this sort of thing,
  3. your overall budget.

A significant factor to keep in mind while doing this is always to follow local codes on changes you decide to make. Flippers often look for homes at auctions (since they are usually cheaper in those scenarios) to increase their profit margin after they do the repairs.

2. Wholesaling Houses

If you’d instead work on something remotely or from the comfort of your own home, there is a new type of investment you shouldn’t miss out on. What we are talking about is investing in wholesale houses. The process is that you buy the contract for a home, and after that, you re-sell it to someone else before you have even taken possession of the house. You are given the ability to buy homes “sight unseen” and then re-sell them to flippers and other people looking for real estate. 

The most significant benefit is that you can do it without leaving your home’s comfort. Another great thing about this is that you are not confined by location. For example, you can buy the contract for an investment property in Florida while staying at your home in North Carolina. If you do enough research, you can quickly turn a profit. Just remember that with these investments, the location plays a crucial role. For instance, choosing the right neighborhood in Florida could make or break your ROI. That’s why research is necessary for this kind of real estate investment.

With wholesaling, you are selling off the contract to buy. It has the potential to be an incredibly lucrative real estate investing strategy for those who put in the time to learn how to do it.

3. Short-Term Rentals

Rental properties are, to this day, an amazing option. While there can be plenty of risks, there are also plenty of rewards, especially with a diverse enough portfolio. With the rise of websites such as Airbnb, which offer the freedom to rent out properties to short-term renters, this process has become even easier to get into for newer investors. In truth, owning a vacation home that you can rent out can really change your life.

Having a furnished apartment can yield a huge profit in some cities. Short-term renters enjoy staying in well-designed homes and apartments. A big trend in recent years is renting out sleek, modern-looking homes when your rental is within a city or focused on summer vacations. But, if your home is in a more rural area, people will much rather opt for a rustic cottage or log cabin vibe with their rentals.

4. Long-Term Rentals

Another popular option that investors love is owning apartment complexes, duplexes, and houses which they use as long-term rental opportunities. Aside from being a relatively reliable passive income stream, commercial rentals are also popular with real estate investors because they typically require less oversight. To manage these properties, investors typically opt to employ different property management companies. It is then put on the representatives of those companies to oversee repairs and payments.

Toy house and keys on a table
Long-term rentals can easily become a passive income stream.

Experts from Big Man’s Moving Company report that a lot more people have lately been opting to move into rented apartments and houses as a way to escape massive home ownership fees.

5. Buying Real Estate Stocks

For people who are at least a bit familiar with the stock market, you’ll be glad to find out there are ways to get in on the real estate game by investing in real estate stocks. The financial flexibility it offers makes this one of the types of investments you shouldn’t miss out on, especially as a beginner. In most cases, you can typically buy and spend as much or as little money as you want. Investing in apps makes this process more accessible than ever before. Pro tip: you’ll also want to investigate REITs (real estate investment trusts).

6. Rent Out Part of Your Home

If you have a basement, extra room, or a garage you turned into an in-law suite to rent, you can certainly make some cash on renting it out. This is a good place to start for real estate investors who are brand new to the trade. It’s also a good “use what you have” strategy. 

Beautiful guest suite
Turning your garage into a great rental suite is an amazing investment opportunity.

The thing that makes this one of the investments you shouldn’t miss out on as a beginner is that by doing this, you can save up for your first separate rental property, all the while learning the ins and outs of being a landlord. As we have said before, Airbnb and similar sites have made it very easy for you to rent out the extra space in your home short-term. And if you want to find someone who will be staying with you for a bit longer, you can always utilize the benefits of hiring a local real estate agent.

Article provided by Tanya Douglas; tanya@eastcoasthaul.com

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