Beginner real estate investments seem to be very rare since real estate is something that people usually think would take a lot of money just to start with. Although this is quite true, there are a few techniques to invest in real estate on a budget.
How do beginners invest in real estate?
Real estate, like every investment, still follows the golden investor rule of low risk, low reward and high risk, high reward. The best type of real estate investments are those that make profit.
As a beginner, it is important to know which options are feasible and which ones you can do later on.
What are the best real estate investments?
1. Rent out rooms
Let’s say you live with your parents and there is an extra room, why not rent it out?
2. Sub renting out rooms
Depending on the opportunity, renting out a house and sub renting out the rooms could be a good way for you to make money. Let’s say you rent a house for $2,000 a month with 4 bedrooms and you rent those bedrooms out for $600 per bedroom, that leaves you with a $400 profit per month.
3. Rent to own
When renting, if there is an option to rent to own, this might be a better choice since you are paying directly for the property.
4. Leveraging property
Once you have a property, leveraging it to get another property to rent out is a good way to let your real estate investment multiply.
5. Buying land
Land, depending on the location and natural occurrences, usually appreciates. Buying a land, not thinking of it, then selling it later would be a good idea. Of course, make sure your land has value.
6. Leasing commercial
The same principal, try renting out a commercial space then dividing it before renting it out. Of course, talk to the owner if they would be okay with you dividing the property.
7. Flipping properties
Buying broken down houses, fixing them, then reselling them could turn a lot of profit.
8. Accommodate renters
If you have a big house, why not accept the occasional renters?
9. Tap into a hidden market
Try discovering certain places that property is cheap but might appreciate because of an upcoming project.
10. Non-traditional rent spaces
Residential is not the only type of real estate. Try commercial or industrial as well.
Also check out: Top 10 College Student Investments: How to Start with Little