Investing in real estate is one of the ideal ways to make money. However, due to diversified opportunities, investors need to make sure to choose the right strategy that fits your budget, skills, needs, and goals. Real estate investment is an ideal investment. However, it contains different strategies that help you gain more returns. Here are the top three key strategies for real estate rental investors:
Real estate rental is a smart way to shift the investment portfolio. Here’s why:
- Real estate rental has both potential income and capital appreciation
- The returns are historically similar to those generated by stockmarket but with less volatility
- The returns are also uncorrelated to the stock market.
Three key strategies for real estate rental investors:
- DIY and buy nearby:
The first key strategy for real estate rental investors is DIY and buy nearby. Almost 70% of the rental properties are owned by investors who live within an hour’s drive of the property. This local investing approach allows the owners to manage the rental by themselves and also scoring a better deal on “fixer-upper” which in turn avoids the management fee. Self-managing can also be frequent in inherited properties as the owner feels a sense of belongingness to the home.
This DIY and buy nearby approach traditionally requires time and expertise with property management. The barrier of third party property management is being removed which eliminates the pains of management. Another benefit of DIY and buy nearby is that the investors gain increased exposure and familiarity with the local real estate market.
- Buy elsewhere:
The real estate investment platforms and online marketplaces have given investors the confidence and support to invest in remote rental homes. RealtySlice allows investors to buy properties remotely from the comfort of the couch. Due to the availability of data and advancement in real estate tech, investors have to no longer travel miles away to purchase a property and bear the hassle of brokers, agents, etc.
Today online platforms allow investors to explore the rental property from the comfort of their homes and they also obtain important analytics such as legal documents, inspection reports, and more to make up their decision on the property.
Furthermore, RealtySlice streamlines the process by introducing the investors to carefully screen the property with the expertise of our property managers who handle the day-to-day tasks of taking care of the rental and tenants. RealtySlice enables the rental property owners to focus more on optimizing their portfolio rather than managing it.
- Set it and forget it:
For investors who prefer the hands-off approach but still require real estate exposure to generate potential passive income, the “set it and forget it” can be adopted. Investors are familiar with the tradional approach where the investors buy shares in Real Estate Investment Trust (REIT) and enjoy the direct exposure to rental homes.
One of the major benefits of buying shares in Real Estate Investment Trust (REIT) is diversification. However, the disadvantage includes reliance on market trends. The dividend yield for market trends also tends to be lower due to an increase in operating costs and overheads.
These are the top 3 key strategies for rental real estate investors. These may be a strong alternative to consider. RealtySlice simplifies the process and makes it easier to purchase the property. Our team of experts will assist you in investing the right property that suits your needs and provide you greater returns with minimal risks.