When putting your money into real estate, you’ll want to ensure your investments are bringing you the highest returns. There are many different types of properties and investment strategies you can use to see great profits. We will review a few of your best options in our latest post.
Get A Mixed Bag
One strategy many investors use is to purchase a portfolio of mixed properties from another investor. The properties will likely vary in value. Some might have a few problems, while others are instantly bringing in profits. This is a great idea for savvy investors who not only know how to find great deals and capitalize on them but also know how to deal with problem properties.
Traditional Rental Properties
Becoming a landlord, of any sort, is a great way to make additional income for you and your family. Single-family homes will likely encourage long-term tenants. There are great options for multi-family properties as well. Under current FHA guidelines, a property with 4 units or less, can still be purchased with an FHA loan. This means that with little money down, you can choose to live in one unit, while the tenants in the other units pay your mortgage! If you want a larger building, you will need to look into commercial financing.
If you decide to invest in traditional rental properties, make sure you are prepared to become property manager! And if not, make sure you have one in place!
One niche many people are using to make extra income is by cashing in on the vacation rental industry. Think about Airbnb and other listing sites. If a house is going for $200 per night, they can easily make $1400 in just one week. This is close to the average monthly price of a two-bedroom rental nationwide. You should prepare for a bit more wear and tear on the home, but overall, it can be a very profitable investment.
Fix and Flip
Investing in a fix and flip house can be a wonderful way to see profits from an investment property in the Tacoma area. Before purchasing any fixer-upper, make sure you have the right experience or resources to properly repair the home. Don’t throw away your money upgrading the wrong elements. You should repair what is broken, and leave the majority of the upgrades to the next owner.
Commercial Real Estate
Investing in commercial real estate can be extremely rewarding when you purchase in the right area. You are likely to have tenants long-term, and they will want to keep the building maintained for their customers and clients. Do you know of an up and coming neighborhood in your area? One smart strategy is to purchase low and as the neighborhood develops, add some upgraded features and benefits to the property. This will bring in more prospective tenants. Depending on where your property is located, there might not be too many commercial options to choose from. Bay taking your property one step up, you’ll help to keep your building fully occupied.