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By Catherine Way
Special to the Financial Independence Hub
Real estate investing has never been easier. With the surge of house-flipping success stories flooding social media, no wonder more people are looking to invest.
With more ways to start real estate investing, starting is the hardest step many face.
Building passive income is a necessity for any successful real estate investor, but owning and managing rentals with no experience can end badly for some.
Luckily there are a few easy ways to start investing to try out which investment style is best for you.
If you don’t know where to start for your first investment, read on!
Airbnb rentals
“Many investors are using the convenience of this app to start building their passive income. Airbnb is a great tool to have short term tenants, and to learn the basics of being a good landlord. With the app doing all the work to find tenants for you, as long as you are in a rea that sees travels, you can start making passive income with little to no investment. In fact some investors are creating only Airbnb rentals spaces because of the demand and profit from it.” – Loren Howard, Prime Plus Mortgages: Hard Money Lender Arizona.
Airbnb is a great app for first-time investors wanting to make passive income. In fact, there are many resource articles online on how to build an Airbnb business. Most people rent out spare rooms or guest houses to Airbnb guests to stay in, and operates like a mini-hotel service.
For those yearning to be real estate investors who do not have whole homes dedicated to investments, this is a great way to start building up your passive income to pursue other projects, or just learn the basics of taking care of tenants.
Airbnb is all over the world and their popularity is still on the rise. The app makes it simple to find tenants for properties, whether short or long term, and it only requires having a good space to start hosting. That means spare rooms or guest houses can begin to make you money, with little to no investment on your end.
Airbnb is a great way to test out being a landlord, and what it takes to start investing. For more serious investors, having spaces available is a great way to build a more passive income on properties with vacancies.
Vacation Rentals
If you have a home or property that is sitting vacant, depending on your location, vacation rentals may be a way to earn top dollar.
Vacation rentals are a great option for starting investors who live in destination or highly-traveled areas. Vacation rentals can charge higher rents, if the amenities match the price, and can earn more in shorter periods of time than Airbnb and even long term rentals.
To be successful your vacation rental should include: security, ways to relax, and a great location! Vacation rentals should be well suited for those looking to relax, so having nearby attractions and higher-end features can be a great way to make more for your investment.
The key to upgrading your vacation rental to be high end, should be luxury not necessity. It may also be helpful to include maps to nearby attractions as well! Think of what features would separate your vacation rental from the crowd?
Remember that an empty rental loses you money! If bookings are slow, use a 3rd party app, like Airbnb to get the rentals flowing in!
Long Term Rentals
Once you get a taste for passive income it can be addicting. While you can make money with Airbnb, and can see a large influx from vacation rentals, Long term rentals are a way of securing a steady flow of passive income.
You can start long term renting with homes, or even a spare room or basement. Having a great space will always attract the best clients, and the more you can offer, whether space or solitude the better.
Tenant screening is your key to success for long term rentals, and having a clearly defined agreement. You can learn more about how to find possible tenants here.
Having long term passive income is a sure-fire way to build your wealth, and to help you move to other investment opportunities, or an early retirement!
Summary
Real estate investing is so easy in this day and age, and anyone with a spare room and a phone can start making passive income today.
Here are the 3 best ways to start making passive income today!
- Airbnb: great for those wanting to get a taste of investing, and learn how to be a landlord.
- Vacation Rentals: For those in great locations having a vacation rental can earn you dollar after dollar in a short term, in the off-season use as an Airbnb rental!
- Long Term Rentals: Make dollar after dollar and start building your real estate empire. Screen your tenants carefully, and have a clear cut contract to save yourself a headache!
Have You Started Real Estate Investing?
Catherine Way graduated from Michigan State University with her Bachelor’s of Advertising with a specialization in Graphic Design. She works as a freelance content creator for many facets of real estate, including commercial, residential, and mortgage industries. She spends her free time finding new ways to talk to people, through writing, designing, dancing, and more.You can see her latest creations here.
