About 63% of Americans own real estate in one form or another. Owning real estate investments is a great way to build up passive income while also allowing your money to gain value.
But you don’t want to buy up any property you find, as this can easily turn into a money pit.
Here are a few ways to find the best real estate investments on the market.
The Area Is Projected to Grow
When it comes to real estate, one of the best moves you can make is to buy a property in an area that plans to see long-term growth. If you’re in your 40s and the area is projected to grow over the next 20 years, this means you’ll have excellent passive income in your 60s or will be able to sell the house for well over what you paid.
Keep in mind that trends change. With any investment in real estate, reassess your position every three to five years. If the area looks like it’s taking a downturn, you might want to get out earlier than you planned.
You’re Getting a Good Deal
When you enter a market early, you tend to find the best deals. These property investments are priced low and are often properties that a family has lived in and kept tidy and maintained, making your life easy. You don’t need to worry about huge upgrades and repairs that’ll cut into the long-term gains.
Look at the history of the appliances, plumbing, electrical, and any other major factor of the house. If everything’s in working order, you’re likely making out with a great deal.
There Are Multiple Avenues to Make Money
Not everyone is in the market to rent out an investment property for long-term rentals. Some people are in the market to flip houses and get out of the game with cash. Others might want to focus on short-term rentals to really maximize their income.
Profitable real estate will be a property that has multiple ways to make money or use it. If there’s ever a downtime in the market, you want a property that ensures you can make use of it. This can be a second home that you visit during certain months or a vacation rental that gives you a place to stay every time you visit.
The best real estate investments give you the ability to do whatever you need to with the property. The more you’re pigeoned into one area, the more likely you are to lose money.
Make the Most Out of Your Real Estate Investments
The goal is to live a comfortable life with your real estate investments. Don’t pick out properties that are going to cause you unnecessary stress.
And always remember: the real estate market fluctuates just like the stock market. Keep your eye on the goal and you’ll be able to withstand anything the market throws at you.
Check out the rest of the blog for more information on real estate investing. Know someone interested in real estate investments? Share this article so they know what to look for.