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The Best Ways to Make Money in Rental Real Estate – Fast!

Miniature Houses on a Piles of CoinsFor anyone who’s been investing in Roslindale 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.

Don’t think that investing in rental properties will automatically mean good money. You have to consider all that these investments come with — risk, reward, etc. Don’t let that intimidate you, though. With just a few tips and tricks, you can get started on the journey of learning how to make money in rental real estate quickly.

Quick but Risky

While most profitable approaches to real estate investing require time, there are a few ways to earn a couple of bucks with real estate. House flipping is a great way to do just that. Yes, it does come with some pros and cons. House flipping, for example, can generate good profit in a year.

The process of locating, buying, renovating, and then re-selling just one property can be very lengthy at times. There are a lot of things that could go wrong in that amount of time, like repairs or a sudden 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. This spells both stress and time.

Profitable (Maybe) and Volatile

One other way you can grow your profit 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. The negative side of owning these rentals is that you are subjecting yourself to a very volatile market. Something like events being canceled to a decline in tourism could make your property not as profitable as before.

Short-term and vacation rentals are great! But, if you want a steady income from them, you would need several tenants. Tenant screening will be such a long process, though! Something you also need to consider is wear and tear, which is bound to happen because of the people going in and out of the property every week. More in and out means more maintenance and repairs — another set of expenses. This could lead to loss, especially if the competition is high and the hotels are cheaper. This will make renting your property more difficult.

Profitable and Stable

On the contrary, the buy-and-hold approach to real estate can be just as profitable as these riskier methods, but minus more of the stress. There’s a reason why many investors have preferred long-term rentals. Long-term rentals, like a single-family rental home, for example, don’t need as much attention on a daily basis. Tenants in these kinds of rentals are more inclined to stay longer, especially when there are already so many renters these days. This will lessen the burden of having to market or screen 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. This does not apply, however, to 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.

If you are interested in the possibility of making money by investing in rental real estate, you’re in luck. We can make that happen for you. Our Roslindale 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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