property to become a landlord. Instead, you can buy a property
that’s in good shape and rent it as is. Examples range from a single-family home to a duplex, multifamily property, or large apartment complex. Rental income can provide you with a relatively stable monthly income, even during a recession. Just remember, the larger your space, the more time and money you’ll likely need to maintain and manage it. INVEST IN AN AIRBNB. Finally, you could buy a home and rent it on Airbnb to earn short-term rental income. Although this option isn’t as steady as having a regular tenant, you can earn more money if your unit is located in a desirable area near a tourist attraction or popular city. You’ll need to clean your rental after each tenant vacates, however, which can require more time and effort than a long-term rental property. So, should you invest in real estate during a recession? Markets ebb and flow. Investing in your future is important if you want to build a nest egg or retirement fund. If you’re looking for a career change or a way to earn passive income or if you simply enjoy flipping homes, investing in real estate when the market cools can be a smart play. •
RENT YOUR REMODELED PROPERTIES. If you have trouble reselling a flipped home, another option is to rent it and collect money each month. If you choose this route, make sure to factor upkeep expenses (e.g., lawn care, general maintenance, and repairs) into your budget. Also consider the time you’ll spend resolving tenant disputes or requests. You can always hire a property manager to help. Just be aware that doing so will eat into the income you earn from your rental each month.
You must have enough money to buy a home outright or put down enough of a down payment to receive financing. You’ll also want to estimate how much money it will cost to renovate the home. Use an investment property calculator so you don’t underestimate and find yourself underwater on a home project. If you estimate your expenses correctly, plan ahead, and find a market where you can resell the home at a higher price, house flipping can generate hundreds of thousands of dollars. You can then sink the profit into a new project to help grow your portfolio.
Luke Babich is the co-founder of Clever Real Estate, a real estate education platform committed to helping home buyers, sellers, and investors make
smarter financial decisions. A licensed real estate agent in Missouri, his research and insights have been featured on BiggerPockets, Inman, the LA Times, and other media outlets.
BUY-AND-HOLD PROPERTIES. Of course, you don’t have to flip a
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