When planning for retirement, it’s a good idea to find sound ways to invest your money so you have security during your golden years. Real estate investment is a good way to provide a comfortable retirement income. Here are easy ways to get started investing in real estate.
Keep in mind that several of these involve paying a sum upfront, so start saving now. Set aside ten percent of your disposable income until you have a sufficient amount saved up for a down payment.
Buy a Second Home
This is one of the easiest ways to get started in real estate. Stefan Soloviev advises you to save enough money for a down payment, and then purchase a second home as a rental property. You want to look for a dwelling in a good neighborhood, and make sure it’s something you wouldn’t mind living in yourself. If you can’t rent it for some reason, you can live in it instead and rent out the home you’re currently living in.
By renting out a second home, your tenants pay your mortgage for you. Once that house is paid off, you get that rent as extra cash for years to come.
Buy (And Live in) a Duplex
This is another low-cost way to own a home and invest in real estate. Also known as house hacking, others help you pay your mortgage, but you’re the one who owns the building outright by the end of those payments.
Rent Out an Extra Room
If you don’t have enough money to buy a duplex or other large building, you could rent out an extra bedroom in your home. You’ll have a roommate, either a plus or a negative depending on the person who rents the room. Before taking this step, be sure to weigh both the pros and cons of renting out an extra bedroom.
Buy a Home and Flip It
This type of real estate investing involves buying a home and fixing it up. After that, you can hopefully sell it for more than you paid for it. For this to work, you’ll need remodeling skills and sufficient cash to pay for upfront materials, so think carefully before investing in a fixer-upper.
Investing in real estate is possible on a small scale, and you don’t need a huge amount in your bank account to become a real estate investor. Follow these steps, and you’ll be well on your way to a comfortable retirement.