Investing in real estate is one way to generate an income. It can be your full-time job, or it can be your side gig. If you want to invest in real estate without worrying about the maintenance that comes with it you can hire a management company, buy a condo, or put your money in real estate investment trusts.
Hire a Management Company
A management company can be a great asset for your real estate investments. While they can be expensive, they will take care of the maintenance of your real estate in addition to finding tenants and collecting rent. Hiring a management company will mean that you can reduce your workload and can have peace of mind knowing your property is cared for. It is not always worth hiring a property management company. Because they can be costly, you need to ensure you can afford the cost and still make a profit. Management companies can be beneficial if you have multiple properties, you don’t live near your property, or if you have limited time.
Buy a Condo
When you buy a condo, much of the maintenance is taken care of. Maintenance of the individual unit is the responsibility of the owner, but many condos are part of an HOA which helps to maintain the entire complex. HOA stands for Homeowners Association and sets rules to help maintain the condos. There are fees associated with an HOA, making a condo a little more expensive, however, you will have to worry about less maintenance. An HOA will take care of the building exterior, maintain the roof, and maintain common areas or amenities.
Real Estate Investment Trusts
A real estate investment trust (REIT) is a way of investing in real estate that won’t require you to worry about maintenance. REITs are companies that own, operate, or finance real estate that generates profit. This option allows you to invest in real estate like how you would invest in things like mutual funds. When you purchase a REIT, you own a share and get a profit when the company makes an income, without having to worry about maintaining any properties.
You have many ways available to you to invest in real estate. You need to determine first how involved you want to be before deciding how you will invest. No matter what you choose, your investments can help you make money.
Check out this article on choosing the type of home loan that’s best for you!