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5 Top Tips About Getting Into Your First Investment Property

Stephen Foster - Tuesday, December 14, 2021
Property Management Blog

An investment property can generate thousands of dollars in income each quarter. For example, an investor can make an average of $62,000 per quarter flipping a single house.

For investors, flipping houses is just one way for investors to put your money (or someone else's!) to work for you and invest in real estate. There are also real estate investment groups, apartment rentals, and online real estate platforms. 

You can make money on real estate in ways you may not expect, and the best investment property for you may be one where you never even have to change a lightbulb in it.

In the following article, we'll supply a simple guide to investing in property that will help you get into real estate now. 

Why Real Estate?

Real estate, no matter which of the many options you choose from, is a good investment because it generates cash flow.

Using loans and low-down payments (or leverage), a property owner can see a strong return on investment if they keep up on the property, make good decisions on when to sell the property, and watch interest rates for the best deal possible.

While your typical single-family homeowner needs to put down 20% to make their purchase, property investment can put down as little as 5% and still make a significant profit. 

Rental Properties

Rental properties are usually single-family homes, condominiums, or apartments that an investor buys outright and then rents to a tenant for a monthly fee. The landlord may include things like utilities or other amenities to make the apartment more attractive to renters.

A rental property is a great way to ensure a monthly profit. You can structure the rental payments to pay off any borrowed money to purchase the property and stock away for upkeep. If the real estate market spikes, you can also sell the property and make a significant profit when demand is high.

Flipping Houses

With flipping houses, you buy homes that may need some work, fix them up, and then sell them. If you are handy or have a contractor as a business partner, this can be a great way to make money.

You need to be cautious when you select properties that need more work than you can do in a reasonable time frame. Since you don't want to lose money on the property, you need to fix the house up before the mortgage payments for the investment properties start to eat into your profits. 

While not without some risk, the flipping house is a great way to make money, especially in a country where housing inventory has reached a historic low. 

Investment Property Groups and Trusts

These investor vehicles, either online or in-person groups, allow you to invest money and then receive shares in return. You hope that the money you invest will come back to you in profits as the real estate projects are completed, and you see a return on your investment.

These investment properties often include non-residential opportunities like malls and office buildings. As a result, property groups are a great way to get a steady return on investment and dividends. 

Are You Ready to Invest? 

To choose the right investment property or opportunity for you, you should consult a real estate expert. They will help you look at your portfolio, available capital, and ability to borrow.

Once you and the expert determine these factors, you'll better understand which investment opportunity is right for you. 

Are you ready to get started? Contact us today to realize your real estate potential.