Becoming a landlord, or a property owner in general, can be demanding. You’ll constantly be dealing with calls about property concerns and in the long run, the tasks can get tiring. However, understand that this notion is only for property owners who do not know how to invest well—when done right, real estate can be incredibly lucrative, with not much effort needed on your end.
It diversifies your investment portfolio, leaving you open for more opportunities. You’ll also have an additional income generator, which adds more to the appeal of investing in properties. The only problem is that most investors do not know where to begin, especially when it comes to finding the right properties to invest in.
With the right tools and knowledge at your arsenal, you’ll be well on your way to splurging in properties that help you reach the pinnacle of success. Here’s how:
1 – Consider investing in rental properties
Rental properties are nifty, especially when it comes to becoming a real estate investor. The best thing about investing in such properties is that you can live in your own property, all the while renting out your other rooms or units. It allows you to save on costs and at the same time generate profit, all the while venturing into other property investments.
Coined as “house hacking”, this strategy essentially pertains to the occupation of your investment property, especially if you’ve recently purchased a multi-unit building. This allows you to apply for a residential loan, and yet your property doubles as a rental—for the smart investor, this is a deal of a lifetime.
2 – Flipping investment properties are also good routes to take
Those reality television shows may have romanticized the idea of house flipping, but never fear—you likely won’t be dealing with a bed of snakes or burst pipes anytime soon. The idea is to invest in an underpriced home, to be then renovated to perfection. Reselling is the next step, and the ultimate goal is to essentially make a profit. It can be difficult, as there’s always an element of risk.
The best solution? Find an experienced partner. They can help with either time or capital, but you will need a reputable contractor to help you budget the expenses and overall manage the project. Keep in mind that you won’t be generating much income as the project unfolds, so consider living in the home for a while!
As long as you choose a property that only needs a little cosmetic improvement, you’re all set. That said, never choose a property with damaged walls and collapsed ceilings.
3 – Never underestimate the power of research
Before finalising any purchase, make sure that you research the land deed and actual property thoroughly. Consider the neighbourhood’s plans, and how its economy will later affect property value. No matter how good your renovation project may be, possible external factors can ruin your investment in the long run.
Once you’ve done your research, take a step back and assess your decision once more. Keep in mind that investments are always a risk, so brace yourself for possible changes. Make sure to keep your mind open for other possibilities, such as other promising properties. Don’t stop until you’ve landed on the right one!
The Bottom Line
The golden rule: a real estate investment is only ever good if it serves you the best possible way. Anything less should be immediately tossed aside—money, resources, time, and effort are in line. If it doesn’t feel right, it’s best to move on to other investments. You’re better off with properties that increase in value and ultimately, help you achieve your goals.
For help and much-needed property investment guidance, Ready Let will be happy to assist you. ReadyLet specialises in high-yielding properties, helping you refurbish properties before your purchase. This ensures that you get the best possible investment—with high standards. If your looking for an investment property that is tenanted & fully managed then drop us a call!