REAL ESTATE IS THE NUMBER ONE LONG-TERM INVESTMENT MADE BY AMERICANS.
Real estate is not only a sound investment, but one that can provide steady income while also building long-term wealth.
“Gallup usually finds that Americans regard real estate as the best long-term investment among several options — seeing it as superior to stocks, gold, savings accounts and bonds.”
WHAT ARE THE OPTIONS FOR INVESTING IN REAL ESTATE?
Purchasing a property as a rental is a great way to build wealth and invest in real estate. Many choose to manage properties themselves. However, property management services like ours make owning a rental property very easy, leaving you to just collect a check each month.
Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs), which are typically offered through a financial advisor or wealth management company, provide real estate exposure without the need to own, operate, or finance properties.
Regardless of the type of investments, real estate is always a great way to build wealth and invest in your future.
INVESTMENT PROPERTY CASE STUDIES
Vacation Rental Property in Peoria, Arizona (This is my own Vacation Rental Property!)
This everyday home was purchased for $422,000 in January of 2021. We invested $75,000 into renovations, updates & furnishings and then listed it on Airbnb with a local property manager. Within 3 weeks, the home was fully rented for 10 months straight at our desired nightly rate!
Investing in a home that can be rented out for vacation use on sites like AirBnb, VRBO and others can be an excellent consistent income generator. In this case, the mortgage is $2,300/month including utilities, + our property management fee of 10%, while the income from AirBnb is $9,000/month. That’s almost 6k per month in income with almost ZERO upkeep outside of our property manager!
Rental home updated & sold in Mill Creek, WA
Single Family Home in Redmond, WA
This home was initially purchased as a family home in 2002. The owners lived there for 16 years before turning it into a long-term rental. After renting it for 3 years, the owners decided it was time to sell to maximize their capital gains tax exemption of $500,000. They also determined it was necessary to complete some renovations prior to listing to freshen up the home and maximize their profits. With the help of my general contractor and my team of professionals, they invested $25,000 into the kitchen, hall bathroom & interior painting. Prior to listing, this home was only worth $1,400,000. With this minimal investment, along with interior staging, their home ended up selling for $1,700,000! That’s a $300,000 increase in sale price! I can’t stress enough to my clients the importance of having your home in the best condition possible prior to listing. Do not offer a credit at closing – buyers want move-in ready homes, not a credit, and the right buyers are willing to pay for it!
From their gains, the sellers opted to do a 1031 exchange with the amount they realized, into two different properties – a brand new Seattle townhome and a single-family home in Arizona. Both will be used as long-term rentals with the help of property managers.