Have you been considering investing in real estate but do not know what options are out there? There are options such as creative financing or wholesale sales, which although they might not be the first to come to mind, are common in the real estate investment world. Long-term rentals have been a popular, traditional investment strategy. This entails leasing for long-term periods. This may be month-to-month or one-year leases, which are typically renewed annually. However, there are other investment strategies, which may also fit your goals.
Short-term rentals: These types of rentals may include corporate or other professions which have employees or contractors who are hired temporarily. For instance, travel nurses or corporate employees assigned to temporary projects might find it more convenient to stay in a house instead of a hotel for the duration of their contract. You may post your property on websites such as FurnishedFinder.com or other similar corporate rental sites.
The other commonly known short-term rental option is to rent to people who are vacationing or only need to stay for a few days. You can advertise on sites like Airbnb.com or Vrbo.com. This is borderline entering the hospitality industry, but it can give you a great rate of return if you are willing to put in the work and time to make it successful.
Shared housing: In these types of rentals, individuals rent the room only, share other common areas, and there may be house rules that need to be followed. If your property is near a college, you may advertise through them as well. There may also be other niches, who may benefit from shared housing as well.
House flipping: This type of investment has also been well known for many years. Keep in mind, it is recommended that you do not purchase a distressed property for more than 70% of the after repair value minus the cost of the repairs. It helps to have contractors available to inspect the property and do the necessary repairs within a reasonable timeframe.
New Construction: This type of investment will take more steps. Once you have the vacant lot, you need to decide if you will hire a construction manager to help with timelines, permits, bids, etc. or go straight to a general contractor. Then, you need to have the necessary contracts outlining buyer’s rights, financing, warranty, etc.
At a glance, these are a few strategies to consider when looking into investment options. It’s important to study your options, compare the pros and cons, and always have an exit strategy. When you are ready to take this step, I recommend you consult with a real estate professional who may guide you further through the intricacies these investments entail.
Lupe Ruiz 