The benefits of investing in real estate are endless because there’s so much you can do. Opportunities are arising every day. Today, we’re talking about why income producing assets are the absolute best way to invest money.
Income producing assets are businesses and investments that generate consistent revenue. We all know that in order to make money, you first need to spend money. That’s the beauty of investing money in income generating assets. Yes, you’re spending money, but this isn’t a liability on you. This is something that will be consistently generating income. And if you make the right investments, these assets will eventually produce enough passive income to run themselves.
Best Way to Make Money
Of the many real estate investment strategies out there, positive cash flow investing is one with a few extra benefits. Making money in real estate with income properties is what leads to passive income. Usually in real estate investing, these income properties are rental properties producing a stream of consistent cash flow. Passive income is the money you earn without actually doing any manual labor. Anyone wondering how to invest in real estate and make money should consider investing in income producing assets.
Before actually investing in any income properties, you need to be smart about it and know what move is right for you. Acquiring income producing assets is a commonly-followed strategy, and many real estate investors view it as the best way to make money. If you’re a beginner real estate investor, you should definitely consider this strategy. It will build you a very profitable real estate investment portfolio and once you make your first investment, you’ll never want to go back. Shortly, we’re going to list the different types of rental properties and income producing assets in real estate. However, before we get into that, we want to get you in on a little secret- Mashvisor.
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Related: How to Be a Successful Real Estate Investor with Mashvisor
Now that you’re equipped with the right tools for the job, let’s get into the different types of income producing assets you can invest in to make money.
Income Producing Assets in Real Estate
The list of all the different types of ways to generate income through real estate investing is endless. With the innovation of today’s world, there are new methods and strategies for real estate investing always popping up. Let’s cover a couple of the basics.
Single Family Homes
You can buy this type of property and transform it into a rental unit. It’s usually a small property, not requiring a large amount of capital. It’s a great move for a beginner trying to get a taste of the real estate investing world. Single family homes are only capable of holding one tenant at a time since there’s only one rental unit. However, renters who go for single family homes typically stay for about 3-5 years, which is great. Smart landlords know that you make the most money by keeping your tenants as long as possible. If you attract the right type of tenants and manage your property well, you can expect to generate enough rental income to create a substantial cash flow.
Related: Learn Here How to Invest for Cash Flow in Real Estate
For those of you looking for bigger investments, multi-family homes are the way to go. Why rent out to only one tenant, when you can be holding hundreds of apartment buildings. Multi-family homes are properties that can hold multiple tenants in different rental units at the same time. It doesn’t necessarily have to be a whole apartment building; you can start out with a duplex first.
However, apartments have proven to be quite lucrative investment properties in the United States. Because so many Americans now prefer to rent rather than to buy, the demand for apartments is skyrocketing. Apartments are great income producing assets generating big money.
Short Term Rentals/ Vacation Rentals
Anyone not willing to make the commitment to long-term rental properties will be happy to invest in short term rentals. This type of property is usually rented out to tenants for only a couple of days, usually to people on vacation or a short trip, hence the name vacation rentals. One of the easiest ways to begin making money with this strategy is renting out your own home.
Related: What Vacation Home Rentals Can Do for Your Real Estate Investment Portfolio
With websites like Airbnb, you can quickly and easily list your home and become a host. If you want to go full in, you can invest in a real estate property in a highly visited city, and rent out to tenants. Owning an Airbnb is a great way to begin making money with income producing assets, but make sure you’re abiding by your city’s Airbnb regulations and procedures to ensure a smooth process.
Turnkey Rental Properties
Finally, one of the best ways to generate passive income in real estate is by investing in turnkey rental properties. These are properties which are ready to rent and are managed by property management companies. If you leverage turnkey investment properties, then everything is already done. All you would need to do is purchase the investment property, let the professionals manage it, and collect your monthly cash flow checks while your tenants help you build equity. This is a great option for out-of-state investments or just anyone who doesn’t want to deal with being a landlord. Yes, there’s a bit more to spend here on added service costs, but this strategy will still put money in your pockets.
Want to start making money with income producing assets, but don’t know where to invest in real estate? Click here, and find out where to start. Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!