Investor BlogsBuying an Investment Property: The Ultimate Way to Get Rich by Nadia Abulatif March 3, 2018February 5, 2019 by Nadia Abulatif March 3, 2018February 5, 2019One of the most frequently asked questions we hear is “How to make money in real estate?“. In fact, for this question, our only answer is going to be “investment property“.As you already know, the real estate investing business has been the ultimate way to get rich for many real estate investors and for a very long time. Many real estate investors were able to find their way to becoming millionaires through it. Therefore, if you want to know how buying investment property helped them make it, then keep reading!Related: Learn How to Find Investment Properties That Will Make You MoneyHow to make money in real estate through investment property?In this section, we are only going to talk about real estate investment strategies. In other words, these are the ways in which you can make money out of investment property:Long-term real estate investmentsAs the name suggests, these investment strategies are designed so that you could make money in the long term:Traditional rentals: This form of long-term investing in the most popular in real estate investing. You basically buy an investment property for the purpose of renting it out. Then, all you have to do is to find a tenant to occupy your investment property for a long period of time. Usually, the lease agreement is signed for 12 months, after which you can always renew it or find another tenant. The great thing about this strategy is having a steady monthly rental income for a whole year. Therefore, you will not have to worry as long as your investment property is occupied.Appreciation in real estate: Buying an investment property and holding it for a period of time before you sell it is one of the ultimate ways to get rich! The reason is that by the time you sell it, it would have risen in value. Let’s say you purchased an investment property that is worth $70,000 in the real estate market. You held on to it for around 6 years and then decided to sell it. If we take into account that you have done the right calculations and actually bought a profitable property in the right location, after 6 years, you might be able to sell it for double the price!Short-term real estate investmentsAirbnb renting: The trend of renting out your property on Airbnb has been very popular ever since it was founded. By listing your property on Airbnb, you will be able to attract short-term guests. Really, the Airbnb concept is very similar to that of hotels. However, you are renting a private property. You could either rent a room in your own house, or you could buy an investment property for the sole purpose of renting it out on Airbnb. This investment strategy has proven to be very rewarding financially for many real estate investors.Flipping investment property: Many property investors were able to get rich using, solely, this specific strategy. Simply, a real estate investor finds a distressed property that is selling for a very low price. The next step is to renovate that property and find a buyer who will buy it for a higher price. However, the two most important factors for success in flipping property are time and costs. As for the time, make sure you find a buyer as fast as possible. Regarding the costs, make sure not to overspend on renovations. The goal here is to be able to sell the property so that it compensates the renovation costs plus some profit margin.Wholesaling investment property: Wholesaling is very similar to flipping property. The only two differences are: 1) You do not buy the property, but rather assign it to a contract and 2) You do not perform any repairs or renovations.In this case, you are only responsible for finding an end-buyer and to meddle between him/her and the seller. Moreover, the way you make money is by negotiating a low price with the owner and negotiating a higher price with the end-buyer. The difference in prices is your commission out of the deal.How to achieve success in real estate investing through investment property?Success is a process even when investing in real estate. Therefore, here is what you need to do in order to succeed in the real estate investing business:Get educatedBefore starting to invest in real estate, you have to know the fundamentals. These include the basic terminology associated with real estate investing. For instance, you have to understand what a cash on cash return is. You should also understand what the investment property financing options are. These are essentials if you really want to understand what you are getting into.Regarding the resources, there are plenty. You could read books that are specially written by professionals for a beginner real estate investor. Also, you can search the internet as well as getting a mentor. There are really a variety of real estate resources that you could learn from.Another part of your real estate education is math. In order for you to be able to buy a profitable investment property, you should learn to perform the right calculations. These are important to estimate the return on investment by calculating the cap rate and the cash on cash return.Find the best places to buy investment propertyAs for the best places to buy property, it is easy! All you have to do is to perform real estate market analysis and apply your knowledge of the market. The real estate market analysis is a great way to analyze a location. Also, it is a great way to compare an investment property to others that are similar. In this way, you can always make sure that you are picking the best places to buy a property.Related: Best Places to Buy Vacation Rental PropertyUse the right toolsThe best part of real estate investing is the tools that are designed to make investing in property easier. The investment calculator, however, is the most popular tool that you could go with. This simple online tool has been the favorite for every real estate investor who used it. Rather than just performing manual calculations, you could simply purchase this tool and insert your data to get the most accurate figures regarding an investment property.Related: Every Real Estate Investor Needs These Real Estate Analytics ToolsFinallyAs we said before, success is a process. If you do the right thing, you are more likely to succeed and therefore become a millionaire in no time. Of course, all that we have mentioned above is based on real-life experiences of successful real estate investors. So, if you want to become rich in real estate investing, make sure you check out Mashvisor for more tips and tools. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL AirbnbFix and FlipLong-Term StrategyShort-Term StrategyTraditionalWholesaling 0FacebookTwitterGoogle +PinterestLinkedin Nadia AbulatifNadia Abulatif is an experienced Content Writer at Mashvisor. She was a trainee lawyer before switching to writing about real estate. She is currently doing an LL.M. in Human Rights and International Law. Previous Post Real Estate Questions: What Is a Good Return on Investment? Next Post The Pros and Cons of Wholesaling Real Estate Related Posts What’s the Deal with the Detroit Housing Market in 2020? 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