Real estate investment can be intimidating for beginners. Odds are, you have a million questions.
What kinds of property should you invest in as a beginner in the Dallas area? How much money should you be ready to invest? How do you choose a property that will lead to a high return on investment?
Interested in learning more about the types of properties to invest in as a beginner? Keep reading to see our top six options.
If a tenant is signing a lease for 6 months or a year at a time then you are running a long-term rental property. These are a great and popular way to make money with a real estate investment.
Long-term rentals do not come furnished, they are in high demand, and depending on the area you can charge a reasonably high amount for rent. This is also a stable form of income that will help you plan out your year at least a year in advance.
Investors working with long-term rentals in Dallas and Fort Worth often benefit greatly from working with a property management service to manage their tenants.
Vacation rentals (think Airbnb) are a great way to make money with your real estate investments. Short-term rentals can be rented for a couple of days or a couple of months, and because of the short lease term, you are often able to charge more than you would for a longer-term lease.
This kind of investment property will require you to pay for furniture and basics for the home, so there might be a higher up-front cost.
Commercial properties will cost you more than residential properties. However, in the right hands, they can bring in a strong return on your investment. With longer leases and lower vacancy rates, your income would be stable.
While there is a higher cost in investing in commercial properties, this also means that you will have fewer competitors. Additionally, there are many opportunities to help build your community and make positive changes when investing commercially.
If you are looking for a more hands-on kind of investment, finding a fixer-upper might be perfect for you. You can buy an older property for a lower price, and then you (or your hired contractor) can get to work renovating it!
Once you have fixed up the house, you can often sell it for much higher than what you originally paid. This is especially true if you do your research and purchase a cheaper home in an up-and-coming neighborhood in Dallas.
Real Estate Investment Trusts (REITs)
REITs are companies that own several different types of properties to invest in and allow outside investors to purchase shares of those properties. This is a great way to enter into the world of real estate investment without directly owning or managing a property.
Investing in raw land (vacant lots) involves a lot of research, but can lead to rewarding outcomes.
As long as you choose a piece of land in the right area, whether it is raw land or new construction, you will be able to find interesting ways to make money whether you hold onto the land or you sell it.
Will You Find Properties to Invest In?
With so many ways to enter into the world of real estate investing, it can be hard to know where to start!
However, whatever your interests, initial budget, and time availability, there is something out there for everyone. Finding the right property managers and property management services can make all the difference in the success of your investment.
Interested in learning more? Contact us today to find out how you can take the next step in your financial journey!