About 63% of Americans own real estate in one form or another. Owning real estate investments is a great way to build passive income while allowing your money to rise in value.
But you don’t want to buy a property you find because it can easily turn into a money pit.
Here are some tips for finding the best real estate investments on the market.
The area is expected to grow
When it comes to real estate, one of the best decisions you can make is buying property in an area that anticipates long-term growth. If you are in your 40s and the area is expected to grow over the next 20 years, that means you will have excellent passive income in your 60s, or you can sell the house for well above what you paid for.
Keep in mind that trends change. With any investment in real estate, reassess your position every three to five years. If the area appears to be experiencing a downturn, you may want to get out earlier than expected.
You are getting a good deal
When you enter a market early, you tend to find the best deals. These real estate investments come at a low price and are often properties that a family has lived in and kept tidy and maintained, making your life easier. You don’t have to worry about huge upgrades and repairs that will reduce the gains in the long run.
Look at the history of appliances, plumbing, electricity and any other major factor in the house. If everything is in working order, you probably kiss a lot.
There are several avenues for making money
Not everyone is in the market to lease investment property for long term rentals. Some people are in the market to flip houses and opt out of gambling with cash. Others may want to focus on short-term rentals to really maximize their income.
Profitable real estate will be a property that has multiple ways of making money or using it. If there is any downtime in the market, you want a property that ensures you can use it. It could be a second home that you visit in certain months, or a vacation rental that gives you a place to stay with each visit.
The best real estate investments give you the flexibility to do whatever you need to do with the property. The more focused you are in one area, the more likely you are to lose money.
Get the most out of your real estate investments
The goal is to live a comfortable life with your real estate investments. Do not choose properties that will cause you unnecessary stress.
And always remember: the real estate market fluctuates like the stock market. Keep an eye on the goal and you’ll be able to withstand whatever the market has in store for you.
Check out the rest of the blog for more information on real estate investing. Do you know anyone who is interested in real estate investments? Share this article so they know what to look for.