4 Ways to Expand Your Real Estate Investment
Real Estate Investment
Once you’ve experienced your first success with real estate investment, it’s only natural to start looking for ways to expand.
While you don’t want to over-leverage yourself, there are some good options for growing your real estate portfolio efficiently.
Here are four of the best tips for expanding your real estate investment.
Get a Multi-Family Property
Owning a small multi-family property is a great way to start increasing your rental income.
A triplex or fourplex will let you have the stability of multiple tenants in the same property without the cost of a full apartment complex.
If you’re younger, you might even consider moving into one of the units yourself to keep your living expenses low.
Living in one of the units will also allow you to finance the property with an FHA loan.
Utilize Real Estate Investment Financing
In most cases, banks won’t allow you to finance multiple investment properties with regular home loans.
Fortunately, an entire industry exists around investment property loans that can help you finance profitable real estate projects.
These loans are great for fix-and-flip deals, since they’ll often include enough to both purchase and rehabilitate the property.
Target New Rental Niches
Although the typical single-family house makes a great rental, you can also play around with properties that will attract specific niches of tenants.
Large houses near college campuses, for instance, are perfect for getting college students to rent from you.
Compact homes in upscale areas may attract young professionals who want to enjoy the nightlife.
Consider what kind of tenants you want to appeal to, then find the right property that will fit your ideal tenant’s needs.
Consider Properties Adjacent to Your Current Ones
If a house next to the one you already own comes onto the market, it may be worthwhile for you to buy it.
Owning adjacent properties keeps your investments accessible and makes it easier for you or your property manager to handle maintenance.
If you’re already happy having one rental in a given neighborhood, you’ll likely see similar success with another that’s very close.
With these four tips, you can begin the process of expanding your real estate investment portfolio.
Needless to say, a huge part of your success will be finding the right properties for the right prices.
Do your due diligence on every property you buy, even if it seems like a perfect fit in following one of these suggestions.
Category: Investing
