Owning a home is the first step to securing your financial future. At a time when the cost of living is rising astronomically, there are ways to make your current home work for you.
Here are some simple ways to break into the real estate market and go from homeowner to home investor.
While many of us may be content to own one primary residence for the duration of our life, those of us who are savvy about investing know considering ways to cash flow your primary residence can make a world of difference when it comes to generating financial security for your present and your future.
The bottom line? You can begin your career in real estate investing for as low as the cost of running an ad for a roommate.
Here are just a few ways to cash flow your property you might not have thought of:
Get a Roommate
When Market Source Agent Jennifer Holmstead found herself upside down on a home and in the midst of a divorce in the middle of the 2008 real estate crisis, she decided to bite the bullet and get a few roommates. Fast forward to today and her home is worth 2.5 times what she paid and is currently cash-flowing as a rental property. While it might not be considered the ideal situation, sometimes getting a roommate is the best possible way to get into a home in the first place, and often the best way to keep a home in times of financial strain. What Jenni learned is to ride the difficult times with creativity and ingenuity and that time in the market is everything. So if the only way to get into a home or keep your home is to get help, we say go for it, it will only serve you in the end.
Purchase a Home with a Built-In Apartment
Although duplexes and homes with built-in apartments can come at a higher price and tend to go quickly even in the slowest markets, we highly recommend holding out for one of these if you know cash flowing your property is at the top of your list. Living in a primary residence with an attached apartment is a great way to dip your toe in the world of real estate investing and see if it feels right for you. If it does, you can rent both units and later move on to a primary residence elsewhere, thus expanding your real estate portfolio.
You can create a custom search for duplexes online on this page.
Create a search in your preferred zip code.
Choose "More Filters"
From there, choose "Duplex" from the Property Type dropdown.
Be sure to click "Save Search" in the upper right-hand corner and we will email you any time a new property comes up that matches your search criteria.
There are other properties, such as single-family homes with second kitchens, that could contain rentable space but aren't classified as Duplexes. Be sure to ask your real estate agent to run a broader search for harder-to-find properties with rentable space.
Rent Your Current Home and Buy a New Primary Residence
One of the best ways to break into full real estate investing is to rent your current home and purchase a primary residence. This is a better alternative to staying in your current home and buying an investment property because you are required to put 20% down on an investment property whereas a primary residence typically only requires a 5% down payment.
These ideas are, of course, just a brief and simplistic introduction to the world of real estate investing. If you think owning rental property is part of your future financial plan, consider setting a meeting with us to discuss your personalized Home Buying and Selling strategy.
We’ll start with your financial and life goals and move on to find you the best property to fit your needs. The meeting comes at no cost to you and is bound to be eye-opening and possibility-expanding for those of us who are interested in broadening our future.
You can learn more about that below.
