3 Ways to Invest in Real Estate

Couple buying a property

Couple buying a propertyReal estate is one of the most popular ways to invest your hard-earned money. There are a lot of success stories in real estate, making it top of mind when people first think of getting into investing. If you’re interested in getting into this business, here are three ways to start your real estate investment journey.

Buying straight rental properties

Owning rentals is very attractive for many reasons. One, it gives you an additional income stream if you can find a cash-flowing property. Another reason is that options like section 8 real estate investment or investing minimize the risk of having a property just sit in the market.

What sets rentals apart from other ways of real estate investing is that it’s often – at least at first – a very involved way of investing, not very different from running a full-blown business. From sourcing properties to finding tenants and managing rentals, it’s a big undertaking. However, the challenges do come with rewards!

Buying a home in an up and coming market

The quintessential real estate success story is that of a family that bought a property just for family use and in a few decades found themselves in the middle of a rapidly growing area, increasing the value of their property multiple times.

This is the jackpot that many real estate investors want to find themselves in. Of course, the challenge is knowing what areas will grow in the future. If you have a keen sense for emerging communities, putting down a chunk of your resources into a new home to live in can pay off in the future.

The biggest difference is that this is largely a strategic play because the rewards come in the end, with no prospect of cash flowing in the immediate.

Living in an owned rental property

A third option that many fail to consider is buying a property with the plan of living in it and renting portions of it. It could be a duplex or a multi-family home, or even a single-family home where you rent other rooms out. This combines the rewards of a rental and homeownership.

The upside is that you get cash from the rentals, and you save on taxes when you eventually sell but you also compromise your privacy, and you get more responsibilities being a landlord as well.

Here are just three ways to enter the world of real estate investing. Ask yourself what fits your preferences the best and go for it!