5 Ways to Make Money | Investing in Real Estate
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5 Ways to Make Money | Investing in Real Estate

Category: Investors
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5 WAYS TO MAKE MONEY BY INVESTING IN RESIDENTIAL REAL ESTATE.

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Investing in residential real estate is one of the easiest and most lucrative ways to make money. There are several ways to make money when investing, with some ways being more full-time and more costly than others are. Which option works best for you depends solely on how much money you want to spend and how much time you want to devote to the cause. Let’s take a look at the top five ways to make money investing in residential real estate.

1. LONG-TERM RENTAL PROPERTIES

Investing in long-term rental properties is maybe one of the best ways to make a profit in real estate. It takes a lot of capital up front, but the return on investment (ROI) is high, with the biggest benefit being the constant monthly cash flow.

Both single family and multi-family units have the potential for being great moneymakers, but it can be difficult finding just the right property in just the right area to really make this type of investing worthwhile. Most investors prefer to purchase single-family homes because there are more of them for sale, which increases the chances of finding the right one or apartments with resort like amenities.

2. FIX AND FLIP

Many beginning real estate investors start with fix and flips. They buy properties on the cheap, fix them up, and resell them at a profit. A lot of money is needed upfront for down payments and repairs, as well as the funds necessary for carrying costs until the house is sold again. It can be overwhelming managing contractors during the repair phase, as well as when trying to sell the house again when everything is complete.

The biggest mistake people make when investing in fix and flips is trying to do the repairs themselves. They think they are saving money, but in the long run, it costs more because it takes longer to finish repairs. It is best to hire professionals to make the repairs quickly so you can get to making a profit sooner.

3. WHOLESALING

Wholesaling is when an investor buys a residential property, and then turns right around and sells it to another investor without making any repairs. In some cases, the first investor never even actually buys the property, but obtains it under contract before handing it over to another investor. Wholesaling goes very quickly, and many real estate investors make hundreds of thousands of dollars a month doing it.

4. VACATION RENTALS

Vacation rentals are those properties purchased in a great tourist-y area and rented out on a monthly basis. This options have become most popular in recent years. Especially in high demand destinations like Los Cabos. During peak seasons, vacation rentals can bring in quite a profit. However, during off-peak seasons, (for Cabo usually 2 months spam at most) they can bring a little les desired profits, but they can still cover mortgage and management fees. The key to continually making a profit with a vacation rental is to set the rent at a level that keeps renters in it year-round.

5. LONG DISTANCE RENTALS

When investing in residential real estate, it’s important to look for the best deals possible to increase profits in the end. This isn’t always easy because some markets have incredibly high prices for real estate. What buyers are doing to avoid this issue is investing in residential real estate in another market. One of the markets we represent is peak of Baja California Sur, Los Cabos.

A lot of work goes into investing in long distance real estate. Choose the right location for the right market, find a superstar realtor, hire a property manager, and then look for the right property. You have to trust the people you have working for you, and be willing to travel if needed to. Here at Baja Smart Real Estate we can provide all the above to help and assist you with the best, easiest and flowless property purchase. Cabo being one of the hottest travel destination attract many visitors who seek long term stays and prefer to rent from the owners rather than paying over $700 per night in a hotel room. Therefore market in Cabo has recently increased and is extremely great investment opportunity.

Investing in residential real estate is definitely a great way to increase profits and save for retirement. There are several ways to do it, but it all depends on how much time and money you’re willing to put into the process.

If you may be interested in any residential or investment properties reach out and will gladly assist.

View recommended listings to invest

Dorota Victoria Antoszkiewicz

Real Estate Advisor

dorota@bajasmartrealestate.com

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