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The Best Ways to Make Money in Rental Real Estate – Fast!

Miniature Houses on a Piles of CoinsWhen investing in Bixby rental properties, the key to long-term success is in knowing how to generate income through your investments, regardless of how long you’ve been in the industry. According to recent data, individual real estate investors own almost 75% of all rental properties in the U.S. And, with home values on the rise in markets nationwide (more than 19% since 2020!), buying real estate is both a popular and a potentially profitable way to build wealth.

Don’t think that investing in rental properties will automatically mean good money. You have to consider all that these investments come with — risk, reward, etc. But, with proper knowledge and skills obtained through research, it’s possible for you to make money in rental real estate quickly!

Quick but Risky

Yes, the most profitable approaches to real estate are the ones that require a certain period of time. But, there are still ways you can earn a few dollars here and there with real estate. House flipping is a great way to do just that. Still, it has its pros and cons. House flipping, for example, can generate good profit in a year.

The process of locating, buying, renovating, and then re-selling just one property might go on for a very long period of time. Along the way, you could encounter unforeseen expenses like repairs; or, maybe even a sudden downturn in the market. To create a steady income stream, you will need to have your eyes peeled for investment properties, and maintain at least a few renovation projects at a time. This spells both stress and time.

Profitable (Maybe) and Volatile

Something else you can do to make fast money by investing in real estate is to buy property as a vacation or short-term rental. Some investors like the idea of charging far more than long-term rental rates for a property, especially if it is near popular vacation areas or destination spots. The difficulty with owning these rentals is that owners are subject to all of the ups and downs of a volatile market. If tourism declines, this could lead to events being canceled. Things like these could inevitably affect your property and make it unprofitable.

For those rentals that are short-term or vacation, you will need a good number of tenants in order to stabilize your income flow. But, the screening process for these tenants will take up the majority of your time and energy. It’s also inevitable to experience some noticeable wear and tear, given the number of people going in and out of the property every week. Wear and tear equal maintenance and repairs; meaning, more costs on your end. This will inevitably lead to loss, especially when the competition is high and the hotels are cheap. This will make it difficult to rent out your property.

Profitable and Stable

The buy-and-hold approach to real estate, however, offers just as much profit as these riskier methods. Plus, you don’t get all of that stress in your life! The go-to for most real estate investors have almost always been long-term rentals. They have a good reason for their choice. You see, long-term rentals like single-family rental homes offer more freedom in the sense that it doesn’t need too much attention from day to day. Tenants in these kinds of rentals are more inclined to stay longer, especially when there are already so many renters these days. What does this imply? Well, you won’t have to work hard for the marketing and tenant screening all too much!

What is more, tenants in long-term rentals tend to take better care of the property and can be relied on to help with regular maintenance tasks. Sadly, the same can not be said of vacation or short-term rentals. With long-term rental properties, rental income is far more regular and steady, and over time, property appreciation can make owning long-term rentals one of the best ways to build real wealth.

If you are interested in the possibility of making money by investing in rental real estate, you’re in luck. We can make that happen for you. Our Bixby property managers work with investors like you to help find, assess, and manage quality single-family rental properties. Contact us online to learn more!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.