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From cryptocurrency to rental properties, investing is a great way to grow your income. However, not everyone has a large budget to work with when getting started. If you’re looking to begin investing in real estate, here are some cost-effective solutions that will help generate extra cash flow:
One of the least expensive real estate investment options is buying lots and land. You can buy both lots and land with cash, and the holding costs are usually low. This means that if your lot goes vacant for a month, it will cost you a lot less than if a rental home were to go vacant or need excessive repairs because of bad tenants. With the rise of tiny homes and mobile living, rental lots and land have become increasingly popular, and can produce more return than they would have five or so years ago!
However, it’s important to keep in mind that even though lots and land can turn a decent profit, they will not be as profitable as investments where you actually own a home, like turnkey rental properties.
You may be wondering — what exactly is a REIT? A REIT, or Real Estate Investment Trust, is a company that owns income-producing real estate, such as:
These companies take the money they get from investors and use it to invest in more and more real estate projects and properties. Once those investments generate returns, then some of those returns are then distributed to the investors. By using REITs to invest in real estate, you’re making several small investments in a large number of real estate projects.
If you’re looking to invest in real estate on a budget but actually want to own a home, turnkey rental properties are ideal. A turnkey property is an investment property that a company acquires and rehabs for a client to own and receive regular income from renters. If you can invest a little bit of money in a down payment and have reasonable credit, you can buy a turnkey property that’s move-in ready, and may even already have tenants.
Read our blog and find the best neighborhoods for rental properties in the Memphis area!
Looking to invest in real estate? Our team at Memphis CashFlow works hard to provide investors with ideal rental properties and locations. If you are interested in property investment in the Memphis area, contact us today for more information!