Investing in real estate is a great long-term option. However, most people don’t realize that there are several ways to go about this. One option that is sometimes overlooked is to rent out your property. Whether it’s a house for rent or an apartment for rent, this can be extremely lucrative. Of course, renting a house will be more lucrative, but it will also require more of an investment. If you want to start at the bottom and work your way up the ladder, then it’s recommended that you go on the hunt for an apartment for sale, purchase that apartment and then use it as a property for rent. Once you figure out how to rent your property for the best returns, then you can find a house for sale and take the same approach. In most cases, homes for sale will be a significant investment. However, it’s also possible to find an auction property, which can dramatically reduce your cost. Most people don’t bother with auction properties because they’re not familiar with how the system works. That’s unfortunate for them. If they were willing to put in just one day of research, they would have the potential to reduce their cost by tens of thousands of dollars.
After you have found a property for sale and spruced it up so you can rent it out, you have to then determine the property’s value. This might sound difficult, but it’s actually much easier than you think. The first step is to look at other properties in the area. How much do they sell for? Try to find homes, condominiums, bungalows or apartments that are similar to the property you will be renting out. For example, try to find properties with similar square footage, acreage and amount of bedrooms and bathrooms. Overall features are also important. Also consider location. If another property is similar to yours in every regard but it’s on the beach, then the price of that property should be disregarded.
When determining the price of your property, try to compare to homes that are 1-3 blocks away. After doing a little investigating, you should have a good sampling of what your property is worth. From that point, you will be able to upgrade the property a little, which will then give you an opportunity to make more money on renting it out.
A lot of investors tend to go for apartments and homes simply because they’re the most common, but a condominium often offers the best returns. The reason for this is because a condominium is usually looked at as a step up from an apartment, yet the cost isn’t considerably higher. Therefore, while your cost remains low, you have more justification in raising rental prices. If you don’t want to begin with a condominium, you can begin with a bungalow instead, which is often a unique, fun and profitable experience.