Even as interest rates keep rising in 2019, real estate remains one of the best forms of investment. However, just like with any other potential investment, undertaking thorough research and exploring all your options is crucial to making the right real estate investment. Seeing as the year is still young, now would be the best time to start planning ahead for your next real estate investment. Here are the best deals for real estate investors 2019:
Invest in a rental property. One great way to make money from real estate is purchasing a home and renting it out. To achieve this, you need to find a deal in which the combined mortgage, home insurance, and property tax payment is less than the rent the property commands. One way to do this is buying in an area with high rents such as New York and Brooklyn. New York’s high occupancy rate and rental prices make it a smart choice to buy rental property. Just note that this state enforces strict regulation on property investors renting out to Airbnb. This is important to keep in mind when investing in short-term rentals.
Flipping houses. Since property values are still on the rise, it is a great time to get started on flipping homes. Flipping homes refer to the exercise of purchasing homes that are under market value, fixing them up and reselling them for profit. To be successful at flipping homes, you need to take the time to hunt down bargain homes. Ideally, the less renovation work you need to do in a home, the better it is for you. Hence, the ideal flip home would be one that needs minor cosmetic repairs. All you need to do for such homes is make them look more aesthetically appealing and modern to sell at a profit. Dallas/Fort Worth provides a great real estate investment region for those looking to flip homes. This metropolitan region shows a strong economy with big population growth due to its low cost of living, which is a major indicator of the increasing demand for properties in the area. Also, its high supply of new construction shows that the city has high absorption, making it an ideal real estate investment region. If you do decide to flip homes, you need to prepare yourself for the fact that the home may not sell as fast as you had anticipated or for as much profit. If you have a knack for DIYs and doing renovations, flipping homes could also be one of the best investments for you in 2019.
Last Mile Warehousing. Commercial properties that are non-residential provide an intriguing option for those looking to invest in real estate. According to real estate experts, income made from renting space to businesses is generally higher than that from residents. Also, the contracts to lease are usually longer than residential ones. Although costlier, if you look for such properties in a prime area, you can count on them to make some good returns. One such property you should consider investing in this year is the last mile warehouse. To succeed in this, you need to look for older, less-operational warehouses that are set near population centers. We especially recommend those around CBDs (central business district) or inner core urban zones. In most states, such buildings have been ignored for years because of their multi-story design and low ceilings. You can make a few remodels here and there and rent it out to businesses looking for additional storage space.
Invest in Vacation homes and condos. The overall affordability of homes for first-time home buyers will be affected by the rising interest rates. Therefore, instead of targeting to invest in a forever home, we highly recommend real estate investors to shift into buying less-expensive vacation homes or condos as an investment. This will give you a chance to make money from your property as the landlord or even an Airbnb host. Consider purchasing such properties in the Bahamas. Here, waterfront properties are selling at a considerably lower amount compared to other markets such as Florida, which is less than half an hour away.
If you are ready to start looking for your next real estate investment, we hope this article helps you make wise decisions on real estate investments in 2019. However, make sure to do thorough research before making any major purchase.
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