5 Ways to Reduce the Hassle of Real Estate Investing
Thursday, August 3, 2017, 6:00 AM | Leave Comment
Real estate is considered by many to be the ultimate investment, but it can come with some drawbacks if you don’t know what you’re doing.
Unlike a mutual fund or money market, you can’t let a rental property sit, and expect it to magically produce income year after year.
The price you pay for high long-term returns is the hassle factor. But it doesn’t have to be an all-consuming occupation.
Here are five tips to reduce the hassle:
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Stick to Urban Areas
People congregate in cities for a reason: that’s where the jobs are. If you want to be successful in real estate then make sure you invest in a metropolitan area where there will be plenty of hungry people eager to rent your place because it is in the perfect location right in the heart of everything.
Never invest in properties that you can’t easily travel to. You don’t want to be a landlord in a different state.
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Buy a Real Estate Investment Trust (REIT)
A real estate investment trust is a great option for those who want to invest in real estate but don’t want the hassle of becoming a landlord or flipping properties.
Your money goes into a trust to buy other properties and 90 percent of the profits are more are paid to investors in dividends. This is great if you are new to real estate investing.
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Join a Real Estate Investment Group
Getting advice from seasoned real estate pros is priceless. When trying to reduce the stress of real estate investing, why not talk to the people who know the business the best?
You can bounce ideas off of other members and even come into contact with people who know some great property managers who could take a load off of your shoulders when it comes to handling renters.
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Rent to Students
If you live in an area that has a university nearby, then consider leasing rooms in your investment property to students.
While the thought of dealing with complaints from people who are out on their own for the first time may not be appealing, it beats the headache of not having positive cash flow.
Since you will have four, five, or six students sharing a house at once that leave plenty of extra money each month.
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Hire a Property Management Company
The surefire way to avoid headaches when investing in real estate is to hire a property management company to manage the property for you.
When hiring a property management company, quality is key. You want to make sure that they have a track record of putting good tenants into the property who will pay the rent on time.
You also want to make sure that you have enough return on your investment to afford the fees that the company will charge while still maintaining positive cash flow.
All in all, this is your best option for reducing hassles associated with real estate investing.
Follow these five step and you will be well on your way to a stress-free and profitable adventure in real estate investing.
Just one final point:
The more you learn, the less stressful real estate investing is going to be.
So if you’re looking to learn more about real estate investing and how it works, check out this guide. It will teach you some of the top pros and cons of real estate investing, along with how to avoid the most common beginner mistakes.
References
https://www.rentecdirect.com/blog/the-pros-and-cons-of-renting-to-college-students/
http://pyramiscompany.com/
https://www.biggerpockets.com/renewsblog/2015/02/23/forget-mls-7-clever-ways-find-great-real-estate-deals/
