Did you know that about 30 percent of Americans (1 in 3) have a side hustle?
A side hustle might conjure images of someone who’s working multiple jobs, but this isn’t always the case. A side hustle is anything, be it a job or an investment, that earns you additional income. The best side income, though, is passive.
Investing in a property is one of the best ways to earn passive income. However, making such a big investment isn’t the same thing as finding a second or third job. You stand to lose a lot of money if you make bad decisions.
To help you make a sound investment, we’re sharing tips you should put to use. Read on!
Choose the Type of Real Estate Property to Invest In
There are a handful of real estate investments you can make.
You can buy a residential or commercial investment property. You can also invest in a vacation rental or even buy raw land.
As such, the first step to investing in real estate is to identify the kind of real estate asset you want to put your money into. There are a number of factors to consider before reaching a decision, including your access to capital. In most cases, commercial properties will be more expensive than residential and vacation rentals.
Get the Investment Capital
Investing in any kind of real estate property is capital-intensive.
For perspective, the median price of a home in the U.S. is about $200,000. So, if you’re going to invest in a rental, you need to fork out this amount for one unit or more if you need to start with multiple units.
The good news?
If you don’t have the money in cash, you can secure financing. For example, as long as your credit history is good and you’ve got a primary source of income, you can secure a mortgage, which you can use to buy an investment property.
Location, Location, Location
You’ve certainly come across this expression. It’s not a fad.
In real estate, location is everything. The right location doesn’t just get you homes at the best prices. It’s also where you won’t struggle to find tenants if it’s a rental property.
There are also other geo-local factors to consider. For instance, how do the local regulations affect the real estate industry? Are the taxes punitive?
Do extensive research before settling on a location.
Know How to Manage Your Property
Making a real estate investment is only half the job. The other half is managing the property so that you can get the most out of it.
Managing a property properly means being there to attend to your tenants’ complaints, hiring security and cleaning services, and providing other utility services. Some investors hire property managers to do this job. You should too, especially if you’ve got multiple properties.
Investing in a Property Earns You Passive Income
Investing in a property is an ideal way to earn a side income without lifting many fingers. If you’re ready to make this step, you’ve made a smart decision. With this guide, you now know what you need to do in order to make a sound investment that will earn you steady passive income.
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