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

Miniature Houses on a Piles of CoinsNo matter when you started investing in Pearl City rental properties, you can always learn how to gain more through your investments — that is the key to long-term success. 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.

Investing in rental properties is only the start. Making good money comes with knowing how to handle those investments. As it is an investment, naturally, it will come with many points to consider. Don’t let that intimidate you, though. With just a few tips and tricks, you can get started on the journey of learning how 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 one of those ways. Still, it has its pros and cons. As an example, house flipping allows you to make extra profit annually.

The process of locating, buying, renovating, and then re-selling just one property might go on for a very long period of time. In that long period, there may come certain repairs that are unforeseen or 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 can be a source of stress, and it will demand a lot of your time.

Profitable (Maybe) and Volatile

Another viable method 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 disadvantage of these rentals is that the owners are completely dependent on a volatile market. Something like events being canceled to a decline in tourism could make your property not as profitable as before.

The thing with short-term and vacation rentals is that you need many tenants to earn a steady income. Be ready, though; you will have loads of tenants to screen in the screening process. Given how many people are going to be going in and out of your property weekly, wear and tear are going to be more evident. When wear and tear happens quickly, you will need to spend on maintenance and repairs. That means an increase in costs. When the competition is high, hotels are cheap, and the rental property is hard to rent out, this creates a loss for your investment.

Profitable and Stable

On the contrary, the buy-and-hold approach to real estate can be just as profitable as these riskier methods, but minus more of the stress. For a long time now, many investors have chosen to invest in long-term rentals — for good reason! Long-term rentals like single-family rental homes require less daily attention. Tenants in these rentals tend to stay for long periods of time, especially because the number of renters has shot up in years past. Long-term tenants mean less marketing and screening of tenants.

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.

So, are you looking to gain a profit through investing in rental real estate? We can help you achieve just that. Our Pearl City property managers work with investors like you to help find, assess, and manage quality single-family rental properties. Contact us online to learn more!

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