For anyone who’s been investing in Fishers rental properties, it’s common knowledge that making a profit through your investments is what leads to long-term success. According to recent data, individual real estate investors own almost 75% of all rental properties in the U.S. And, with home values on the rise in markets nationwide (more than 19% since 2020!), buying real estate is both a popular and a potentially profitable way to build wealth.
Investing in rental properties is only the start. Making good money comes with knowing how to handle those investments. Just like any other investment, there are other factors involved. Nevertheless, with the proper set of information and skills, anyone can easily learn how to make money in rental real estate quickly.
Quick but Risky
Even though many of the more profitable approaches to real estate investing require a length of time, there are some ways you can earn a quick buck in real estate. One way would be house flipping. It’s not all that easy, though. It still has its own pros and cons. To illustrate, house flipping makes it possible for you to turn a profit in a year.
The process of locating, buying, renovating, and then re-selling just one property can go over a long period of time. In that time, a lot can change. For example, you could discover repairs that are necessary or a downturn in the market. To create a steady income stream, it is important for you to be looking for investment properties, and to have a couple of renovation projects underway. Be warned: this will be quite stressful, and it will most likely eat up a lot of your time.
Profitable (Maybe) and Volatile
Another viable method to make fast money by investing in real estate is to buy property as a vacation or short-term rental. Some investors like the idea of charging far more than long-term rental rates for a property, especially if it is near popular vacation areas or destination spots. Owning these rentals, though, means that the owners are at the mercy of a volatile market. A lot could happen when there is a decline in tourism or when an event doesn’t go as planned. This could render the property not so profitable.
With short-term and vacation rentals, the key to steady income is to have multiple tenants. Be prepared for the super long process of screening tenants! Another issue you’d want to look into is that of wear and tear — especially because of the frequency of going in and out of tenants from the property. This will lead to maintenance and repairs, and they may cost you a decent amount. If competition is high and hotels are cheaper, you might find it difficult to rent your property to people.
Profitable and Stable
The buy-and-hold approach to real estate, though, can be as profitable as these riskier methods — just without the unnecessary stress and problems. A good number of investors have stated that they choose to invest in long-term rentals. They have a good reason for doing so. Long-term rentals, such as single-family rental homes, require far less attention on a day-to-day basis. These rentals usually have tenants who stay for a long time, especially because the number of renters nowadays has gone up. This means that you don’t have to worry so much about marketing or finding tenants.
What is more, tenants in long-term rentals tend to take better care of the property and can be relied on to help with regular maintenance tasks. Unfortunately, that’s not the case for vacation or short-term rentals. With long-term rental properties, rental income is far more regular and steady, and over time, property appreciation can make owning long-term rentals one of the best ways to build real wealth.
So, are you looking to gain a profit through investing in rental real estate? If so, you are who we are looking for. Our Fishers property managers work with investors like you to help find, assess, and manage quality single-family rental properties. Contact us online to learn more!
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