Buying real estate for a home to live in is one thing, buying property so you can make money on your investment is quite another. There are lots of ways you can make money in residential real estate, be it buying multi-family houses, fixer-upper homes, or smaller properties you can rent out without spending a lot of money in the first place.
Are you ready to invest in residential real estate you won't be living in? Before you take the leap, make sure you're ready to hop on board. This way, you end up wisely spending your money and don't invest at the cost of something else you need. Here are signs you're ready to invest in residential real estate you won't be living in.
1. You have a home that is paid off or not expensive to live in
Do you have a home that is yours free and clear, or at least have a property that doesn't have a massive mortgage? You want to make sure that your own basic needs and a place to live are covered before you invest in residential real estate for profit or other gains. Keep in mind as well that your ability to carry a mortgage for residential real estate goes up the less debt you have, including what you're still carrying on your mortgage note.
2. You have the cash to pay for a home outright
Residential real estate can be a lot more affordable if you have the cash to haggle with in the first place. Consider your options for buying residential real estate when you have the cash to put out there, such as buying auction homes, buying homes from sellers who list properties for sale by owner, or being able to buy out other offers by having cash on hand.
3. You have a plan for what you're going to do with your property
Do you have a plan for what you're going to do with your property once you buy it? Residential real estate cannot be an income property unless you know what you're going to do with it. Make sure you have a goal in mind for the properties you look at, such as having a tenant in a smaller home within a few months or having a fixer-upper back on the market within a certain time frame to make money on the investment.
You can find many residential real estate opportunities via your realtor. Let a realtor help you get the very most out of your opportunity.