Many people think that investing in real estate is that magic bullet that will make them lots of money with minimum effort. Anyone who’s ever had or been a landlord will know that isn’t exactly the case.
Landlords have to deal with lots of calls about rat infestations, damp patches, toilets overflowing and the like, and they have to also fix those problems, so it isn’t exactly the simplest, or most glamorous of ways to earn an income, but it is still probably one of the best investments one can make, especially if it’s done right.
How do you do real estate investment right? By investing in one or more of the easiest to handle options, which have been laid out below starting with the highest maintenance option:
Real Estate for Regular Rental
Investing in real estate that will be rented out all year long is a popular option, but it is the highest maintenance on our list. This stands to reason because if you’re renting a property out year round, there will be lots of maintenance issues and associated costs to deal with it. However, providing you choose a property that is desirable, you should be able to get a regular income from it, which makes it a pretty attractive option.
Investing in vacation rentals like the ones at blackhillsgetaways.com, which may only be used for part of the year is a slightly lower-maintenance form of renting out property because you won’t need to be on call all year round, and you can use a rental management company to take care of things more easily than you can with a full-time rental simply because you can charge a premium for vacation properties. Also, there is the added bonus that you yourself can vacation there, thus cutting costs in your personal life, as well as making you a decent income.
If you have a big enough nest egg to allow you to take out an additional home loan, why not use it to purchase a low-cost property that needs a little work, and then transform it so you can sell it on at a profit? Shows on HGTV have made this option seem a little easier than it is – it definitely takes a lot of hard work and some good knowledge of the market, which means there is a bigger risk – but if you know what you’re doing or you’re willing to learn, it can be very lucrative and actually quite rewarding.
If you’re wondering why this isn’t the most high maintenance on the list, that’s because although it could be if you’re doing the work yourself, most people will hire contractors, which means you can be pretty hands off for the most part.
Investing in Retail Crowdfunding Services
Companies like the RealtyShares.com hook up investors with real estate developers who are looking to finance their new projects. In terms of investing in real estate, this is about as hands-off as you can get because you basically just hand the money over and let them do their thing, and if you choose projects wisely, there is very little risk to be had.
As you can see, there is a real estate investment option for everyone. Choose wisely, and you won’t have to worry about your investments or working too hard to maintain them.