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

Miniature Houses on a Piles of CoinsRegardless of how long you’ve been investing in Frisco rental properties, the key to long-term success can be found in making a profit out of your investments. 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.

Just because you invest in rental properties doesn’t mean you’re automatically going to get rich. As it is an investment, naturally, it will come with many points to consider. Nevertheless, with the proper set of information and skills, anyone can easily learn how to make money in rental real estate quickly.

Quick but Risky

The approaches that generate more profit in real estate investing will require more time, obviously. But, there are ways you can make a quick buck through real estate. House flipping is one of those ways. It’s not all that easy, though. It still has its own pros and cons. House flipping, for instance, gives you extra profit each year.

The process of locating, buying, renovating, and then re-selling just one property can require a certain number of days, weeks, or years, even! In that time, a lot can happen. For example, unforeseen repairs. Or, even a sudden downturn in the market. To create a steady income stream, you will need to be updated with local investment properties, as well as have a few renovation projects on the side. Be warned: this will be quite stressful, and it will most likely eat up a lot of your time.

Profitable (Maybe) and Volatile

Another viable method to make fast money 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 difficulty with owning these rentals is that owners are subject to all of the ups and downs of a volatile market. Should tourism decline, for instance, or events don’t push through, your property probably won’t be as profitable.

With short-term and vacation rentals, the key to steady income is to have multiple tenants. The tenant screening process, though, is such a pain to handle. Another issue you’d want to look into is that of wear and tear — especially because of the frequency of going in and out of tenants from the property. Of course, this means maintenance and repair. These costs will add up, and they will generate a loss, especially if competition is high and hotels are cheaper, or if you can’t rent your property.

Profitable and Stable

If you want a less stressful option, you can go down the buy-and-hold approach to real estate. It’s just as profitable as these riskier methods, too! For a long time now, many investors have chosen to invest in long-term rentals — for good reason! You see, long-term rentals like single-family rental homes offer more freedom in the sense that it doesn’t need too much attention from day to day. Tenants in these rentals tend to stay for long periods of time, especially because the number of renters has shot up in years past. Long-term tenants mean less marketing and screening of 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. Not so of 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.

Interested to grow your income by investing in rental real estate? We can help you achieve just that. Our Frisco 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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