Today I want to talk about three general strategies for investing in real estate.
1. Rentals, or “buy and holds.” Essentially, we buy a property using either financing or cash and then rent it out. One strategy we use to rent out homes is to keep them occupied as much as possible. We prefer to give a little bit less than market rent to make sure we stay occupied, rather than holding out for an extra money and risk a vacancy. It helps get us a higher level of return over the life of the property.
2. Flips, or “rehabs.” This is where we buy a property for below market value, possibly in a distressed condition that requires a lot of work, after which we’ll make some repairs and get it back to market value. Though this is a popular method on TV, these deals are harder and harder to come by, though some people can make a living doing them.
3. House hacking. This is a favorite strategy of mine. House hacking is when we buy a live-in renovation or multi-unit property on an owner-occupied financing plan where you get better terms. You can rent out the other units to help reduce the cost of living.
If you’re interested in learning more about real estate investing or about any of the strategies mentioned above, feel free to reach out to us.