Value add property 

Invest in value-added properties to boost ROI in an initially low-market-value property and garner maximum profits after renovations. Value add properties have low-occupancy rates, are outdated, require various capital investments, and lack proper management. Rehabbing and renovating a value-add property is not the typical property flipping as it may require lots of workforce, serious upgrades, and time. 

Flipping 

The flipping approach entails buying a property, performing the relevant renovations then selling for the maximum amount to make as many profits as possible.  

Flipping might usually seem like a get-rich-quick endeavor than an investment strategy. All you need to do is find below-market-rate real estate deals, fix them up and sell them to garner profits.

Vacation rental 

Investing in vacation rentals that can sustain running by generating a sizeable rental income is an excellent place to start your real estate investment ventures. All you need is a good eye for suitable homes, managing them effectively, and renting them out when you aren’t using them. You also have the advantage of gaining a steady source of income without having to buy an investment property. 

Long-term and short-term rentals 

Both long-term and short-term properties offer excellent real estate investment opportunities.  

Short-term rentals are properties an owner rents for shorter periods, usually for a few days. They have higher rental income potential, are more flexible, and have minor wear and tear. 

Long-term rentals are properties an owner rents for more extended periods, usually more than one month. These investments offer consistent income, are easier to manage, and have fewer turnovers. 

BRRR methodology: Buy, Rehab, Rent, Refinance, Repeat 

BRRR is a popular long-term real estate investment. You perform the steps in the acronym BRRR: buy the property at a below-market price, rehab it, find tenants, refinance the property and use saved funds to repeat the process. 

BRRR allows economies of scale to apply during the repeat process, making the project’s cost more manageable. 

BURL: Buying Utility, Selling Luxury 

You will be surprised at the rate at which investors using the BURL approach buy properties outright when the deal is too good. So what makes BURL the catch? 

The idea behind BURL is to buy properties with a higher cap rate that recoups investments and begin generating profits quickly. This way, you can rent out luxury with a lower cap rate that recoups investments and generates profits slowly. 

Real estate investment trusts (REITs) 

A real estate investment trust will invest in or provide operating costs for a real estate asset. Whether it is an apartment, office, or single-family home, REIT will invest in it. 

Like stocks that are highly accessible, you can find REITs on popular stock exchanges. REITs pay off up to 90% of profits to their investors in the form of dividends. 

Property Tax Lien Investment  

Property tax liens have someone else covering outstanding taxes together with any other interests and fees. When the owner finally pays their property tax payments, you collect the principal and interest from the municipality or state. 

Property tax liens may be purchased at auctions and used to invest in real estate. You may also invest in property tax lien invested funds that investment companies manage. 

Wholesaling 

Wholesaling is also referred to as selling by contract assignment and entails putting together a plan that guides the property’s steps from purchase to sale. It directs the seller to the buyer to collect the assignment fee. 

The steps of wholesaling begin with finding the property, arranging the price, and assembling a purchase agreement. You then find a buyer who buys the property, collects your finder’s fee, and pay the seller. 

Buying and holding properties 

Buying and holding properties is also known as rehabbing and encompasses buying properties, performing the right twinge of rehab, and selling at a later lucrative time. The idea behind buying and selling properties is that properties appreciate over time. 

As a result, you get to enjoy the benefits of a steady income flow and your property rising in price. 

Bottom-line 

The beauty of real estate is that there is something for everyone because you are not restricted to one method. Choose one or two techniques that are best suited to your financial situation, level of risk tolerance, and amount of time available for investment. Also, keep in mind to choose appropriate legal companies for your real estate investment to prevent running afoul of the law.