Tony from Newfoundland, Canada realized the potential of investing in real estate through diving in. He wanted to pursue a passive income through properties with a smaller amount of money. His first step into the investing world began with his first house, which was a small condo. After renovating it with help from a loan, he sold it about two years after for and received a 23% net gain from the property. A light bulb clicked in his head and he suddenly realized the massive potential that owning properties can bring. Tony now owns 4 properties and has an annual income based purely off of his properties of over $25,000. If you are interested in real estate investing and want to create a passive income portfolio for yourself, here are some tips that will help you get started.
Investing in property requires a dedicated amount of capital so it’s recommended that you gather a decent amount before you begin – don’t mistake this for having to earn six figures a month. Some properties can be bought for as little as $30,000.
Look for properties that have an outdated style to them. The outside may look unappealing but the inside may be a gold mine in waiting. You can easily renovate the interior without having to seriously break the bank. Many times, you’ll find that these outdated properties will carry a hefty discount on them.
If you’re looking at a property and see that there is structural damage, you’re better off just passing. There’s always the potential to make huge money from it, but if the flaws are too deep, the gains that you receive from this will be deducted by the repairs that you’re going to have to make.
Be Cautious About Pools
A swimming pool is a great addition to a home or a property. But, they do cost money to maintain and repair. Certain damages like cracks or chips may require you to have to redo the entire foundation. Plus, there are other pool accessories that you’ll need to take care of including: filters, heaters, pool cleaners.
Summing it all up
While real estate investing may seem daunting when you first look at it, once you become fully involved, you’ll understand how to look for and deal with all of the subtle details and nuances of the business. Tony began his investing adventure, isn’t it time for you to try it out as well?
Kuba Jewgieniew is the head of Realty ONE Group, a dynamic lifestyle real estate brand that values finding ways to enhance your overall experience and boost your success.