Ready to turn cash into an investment property? Or are you looking to take out equity in your primary residence to invest? You may even be thinking of “house hacking” – or buying a duplex, triplex, or four-plex, living in one unit and renting out the rest. Even buying a vacation home or an AirBNB are forms of real estate investing. I am passionate about investing in real estate and I would be happy to show you how!
Here are five investing strategies, all of which have different potential for both appreciation and cash flow. I would be happy to show you examples of how you can make these work to fit your goals.
This is the most reliable type of real estate investment because it is always in-demand, is easy to sell if need be, and with a single tenant or group of tenants, drama is kept down. These also generally appreciate quicker than a condo rental.
These are usually cheaper to get into initially, but the HOA costs are usually higher. Making sure the building is in good health is also something to be aware of. Additionally, buildings may restrict rentals so make sure you understand the building rules. However, maintenance is usually interior only.
Many people don’t know that an FHA loan is available on up on multi-family buildings, up to four units. There is an owner-occupancy requirement, but this can be a great opportunity to get started in real estate investing.
These are also known as AirBNBs or VRBOs and can be anything from a home with an accessory dwelling unit to a single-family residence, to a condo, or even a vacation home in the woods. Different areas have different rules for what kind of rentals are allowed (or not allowed), but short-term rentals have become very lucrative.
If you aren’t concerned about cash flow but do want to invest in a second property, a vacation home may be just the ticket. There are great vacation destinations all around the country, and world, that are worth considering, but it really depends on where you like to spend your time away from home. I would be happy to connect you with an agent in the location you are considering who would be a great advocate for your investing wants and needs.
Financing the Investment
Lending requirements for investment property are more-stringent than for a primary residence, but usually lenders have unique options available depending on the type of investment. If you have an interest, it is worth talking with a lender and exploring your possibilities.