Did you know that in 2021, nearly 20 million rental properties in the United States are owned by individual investors?
You may be someone who has looked at this stat and wants in on the action. However, if you are reading this, you could need guidance on where to begin.
That is where having a good real estate investment strategy comes into play. What real estate investing strategies can you consider?
This guide provides some of your best options.
Short-Term Rental
One of the best options for an investment strategy is to turn your property into a short-term rental. If you are reading this, your property is likely in the Littleton, Colorado area.
Luckily, that means that your property is not far from popular tourist destinations. Littleton is located just outside of Denver and it is only a few hours away from Rocky Mountain National Park.
Last year, over 36 million people visited Denver alone. If you are looking to make money off of tourists who need lodging, this could be a good option for you.
Long-Term Rental
On the other hand, it can be a lot of hassle managing so many guests in a short period. If you are someone who prefers more stability, turning your property into a long-term rental may be a better option for you.
This guarantees that you will have dates filled throughout the year. Plus, you are likely only dealing with one tenant rather than new tenants constantly.
For this type of arrangement, you must screen a tenant properly. From there, you can sit back and make passive income off of your investment property.
House Hacking
This next option allows you to combine the best of both worlds. It allows you to have a place to live while making money off of it. Here, you would live in one part of the house while you rent the other part of your house to somebody else.
Depending on the size and demand of your home, you can go two ways with this. Either use the rent to cover bills such as a mortgage or charge enough where you make a profit off of the place you live.
Flipping Properties
If you are willing to put in a little more work, flipping properties is a great way to maximize your real estate investment. How this works is that a flipper typically buys a property as-is for a low price.
When they do this, they acknowledge that they are likely going to have to do a lot of maintenance and renovations before they re-sell this property. However, if they do the right job and there are no major hidden issues, someone can make a large return on investment doing this.
Use These Real Estate Investing Strategies
Real estate investments can be one of the best ways to make passive income. If you use one of these real estate investing strategies, you have the potential to maximize this income.
Do you need help managing your property? PMI Little Town has you covered. Our real estate asset management company uses state-of-the-art technology to make sure that investment properties are performing as well as possible.
Message us here to learn more.
