Here’s What you Need to Know
Diversifying your portfolio with a real estate investment can be a great way to solidify your retirement income or create monthly cash flow. There’s no better time than today to invest in real estate, especially with the low mortgage rates available.
If you’ve never invested in real estate before, here’s what you must know.
Figure out your Strategy
First, think about why and how you want to invest in real estate. If you’re looking at residential
real estate you have two options:
• Fix and flip – If you buy undervalued properties and fix them up, you can turn them
around, selling them for a profit. Most fix and flip investors have some experience
investing in real estate, though, since it’s a lot of work and requires more capital to fix
the property up and sell it usually within 6 months.
• Buy and hold – If you find properties in good condition (or at least decent and you fix it
up), you can rent it out and earn monthly cash flow. As the homeowner, you’re
responsible for the property taxes, home insurance, and home maintenance, but you
can offset the costs with the monthly rent you bring in.