There are multiple kinds of real estate investing. Today we’ll discuss how three types can benefit you.
Let’s first cover short-term rentals. In our area, there are only certain places where you can buy property and do a short-term rental, meaning a property that can be rented for 30 days or fewer. The beaches allow short-term rentals, as well as some areas downtown. You can also do a short-term rental on a property you live in, such as for a carriage house on the lot or a bedroom in the house. Short-term rentals for vacationers are a great form of real estate investment.
Bear in mind, though, if you manage the property yourself, it’ll take a time commitment of two to three hours per week, or longer if there are items to repair.
On the other hand, long-term rentals are more like buy-and-hold investments where you buy a property, hold on to it for several years, and hope that you have some great tenants for that period. Unfortunately, in my experience, it’s hard to get people to stay on for longer than a one-year lease, which involves more work. But if you can get a great property and a tenant willing to stay for a couple years, it’s an excellent way to gain some equity and financial stability over the long term.
The next investment type is flipping. If you’re looking to get into the flipping market, the key is to find the right house at the right time so you can buy it, do minimal improvements, and profit when you sell it again. Though flipping is the most popular type of investment, it’s not always easy to do in our market because it’s pretty solid; properties aren’t selling for much more than their list prices. It’ll be to your advantage if you can find a unique property in our market to flip.
If you haven’t already, I highly encourage you to read the book “Rich Dad Poor Dad” by Robert Kiyosaki and Sharon Lechter. It’ll teach you all you need to know about buying assets, not liabilities, and provide you tips on making wise investment decisions in general.
For any further questions you have about real estate investing, please reach out to the Healthy Realty team. And if you haven’t already done so, download the Charleston Properties app on Google Play to stay on top of real estate listings in our market.