Should an Investment Home Be Part of Your Portfolio?
Most people build their portfolio with a mix of typical investments like a 401k, mutual funds, stocks, and bonds. However, this also leaves them vulnerable to fluctuations on Wall Street that they have no control over.
Instead, people are starting to turn towards other options that offer more stability and higher returns on their investment. An investment home is a perfect way to gain control over the size and stability of your portfolio.
An investment home is residential real estate that is bought for the purpose of being converted into a rental property. You can receive a steady passive income from the monthly rent you collect in an amount that you have deemed appropriate for current market conditions.
Since real estate generally appreciates over time, you have the added benefit of increasing the value of your portfolio with little to no effort. This combined with steady income makes buying real estate a solid addition to your investment efforts.
What You Need to Know Before Purchasing an Investment Home
While buying real estate and converting it into rental property may seem relatively easy, there is still a lot to consider before jumping in. First, you will need to do a lot of research to determine prime locations as well as market conditions.
Another consideration is developing a plan if the property requires upgrades or renovations. Do you have a team that can do the work for you or will you do it yourself? Also, do you have a property manager in mind or will you manage the property yourself?
Knowing these key factors before you purchase can help you save time and money. They can also help to prevent you from making a bad decision that will cost you in the end. The more you have planned out and outsourced, the more you will be able to benefit from having a truly passive income source.
If you’re looking to diversify your portfolio or create a steady, passive monthly income, then an investment home could be a great option for you.
Our team at LAS Companies has an inventory of investment homes and specializes in helping people interested in purchasing real estate properties. They can help you with property analysis and develop a plan to help you figure out what options are best for your specific situation.
If you’re interested in purchasing an investment home, contact a member of our team by filling out the form.