The Best Rental Property Investment Strategies
You can have different strategies to help you make your rental properties available for investment profitable. Here are some of the best strategies to use to ensure that you make money and be successful in rental property investments.
Income flow strategy – this is the most common strategy that people use and the one that most beginners in rental property investments opt for. In this strategy, you get a constant monthly income from your rental property either as your main source of income or a secondary one. In this investment you have to make sure that the rent collected monthly is more than all the expenses, taxes, mortgage and other fees incurred when running your investment. The difference between the two is your cash flow.
Buy and hold strategy – this strategy is mainly focused buying a property with the intention of renting it out for a long time usually over even 20 years. This strategy is beneficial because it provides you with a long term plan for your property and also gives you the opportunity to benefit from rental income for a long time. You will also benefit from selling the property later on for higher market prices and also after you have really benefited from collected a lot of rental income.
Airbnb – this strategy is ideal for those that have vacation houses, a second home or a home that you have vacant for a period of time. In this strategy you rent out your house to renters usually tourists for a short period of time. Since you are renting out the property for a short period of time, damage is usually kept at minimal. The returns are also higher because you are charging different people for short periods you can charge them higher as you wish Housing Market Also during the peak seasons you get to charge higher prices and therefore you earn more from your rental investment.
Commercial real estate strategy – this is the rental property investment that focuses on commercial properties. This is where you own a building or a property that you rent out to businesses and not individuals. It is preferred by elite and savvy investors because commercial properties bring in more money than residential properties. The charges for a business are different than those for an individual. Commercial properties are also easy to run because one building could have just a few businesses which means less complains for you other than where you have to deal with so many tenants calling any time of day or night.
The strategy to use really depends on your ability as an investor and what you prefer. If you are only starting out in rental property investment go with the cash flow strategy and build your portfolio from there.
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