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Investment Property: A Guide to Starting Your Rental Portfolio

Investment Property: A Guide to Starting Your Rental Portfolio
By Roger D. Eagleton - Tuesday, April 12, 2022

Did you know that 12.3% of millennial renters plan to always rent? This might not sound like a lot, but it comes out to millions of individuals.

For real estate investors, this means always having at least 12% of millennials, not including other generations, looking for a place to rent.

Now is a great time to start a real estate investment property portfolio, but how do you get started? Keep reading to learn some of the common options.

Buy REITs

REITs, or real estate investment trusts, allow you to invest in real estate through a process similar to investing in stocks. Although not mutual funds, they are often compared to this form of investing.

Instead, they are companies that own commercial real estates like apartments, retail spaces, hotels, and office buildings. REITs pay high dividends but investors that don't want the regular income can reinvest the dividends.

REITs can be good investments but the risk factor varies depending on the type of REIT you purchase.

Find Real Estate in an Online Investing Platform

Another way to start your real estate portfolio is by using an online real estate investing platform.

These platforms can connect real estate developers who need financing for projects. Investors can give them this money in return for monthly or quarterly distributions.

These aren't easy to unload like a stock because they are speculative and illiquid.

You'll need money to make money as most platforms only offer these opportunities to accredited investors. For this reason, this option is not the best for beginner real estate investors.

Invest in Rental Properties

When people ask how to start investing in real estate, they are likely looking to buy rental properties of their own.

You can buy and rent out an entire investment property but calculate how much you can afford and the potential profit.

You'll also need to consider the fees that come with the staff you hire. For example, property managers can handle the day-to-day property tasks to make things easier.

One of the best real estate investment tips is to use a technique called hacking. This refers to buying a rental property and occupying one of the units while renting out the others.

This is a great way for new investors to make money and afford all of their expenses at the same time.

Consider Flipping Properties

For some, the best property to invest in is one that needs work and can be flipped for an even greater profit. Although this form of rental investing is becoming more common, it takes a lot of hard work.

Not only will you need to ensure your math is correct, but you'll also need to spend time working on the investment property. You can hire someone else to do this but it wouldn't make sense for your budget.

Start an Investment Property Portfolio Today!

If you want to buy an investment property, now is the time to do so! Renters are on the rise and looking for affordable living.

Start your investment property portfolio today by considering these investment ideas.

Once you have a rental property in your name, hire property management services for help. Contact us today to learn more about what we can do for you.

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Author

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Roger D. Eagleton
President / Broker
Looking for a property management expert who can take your rental properties to the next level? Look no further than Roger D. Eagleton, a true seasoned professional with a diverse background in real estate. After earning his degree from California State University, Bakersfield, Roger began his career in the real estate industry with several national banking and lending institutions, sharpening his skills in real estate finance. He later founded Energy Real Estate and Five Star Property Manageme...
Looking for a property management expert who can take your rental properties to the next level? Look no further than Roger D. Eagleton, a true seasoned professional with a diverse background in real estate. After earning his degree from California State University, Bakersfield, Roger began his career in the real estate industry with several national banking and lending institutions, sharpening his skills in real estate finance. He later founded Energy Real Estate and Five Star Property Management and has since been committed to providing his clients with the highest quality property management and real estate services. With an extensive knowledge of residential income property, Roger is well-equipped to take on the unique challenges of managing rental properties. He works closely with private investors and court-appointed conservators to ensure that fiduciary properties are managed to the fullest potential. He also has a wealth of experience managing single-family homes, apartment buildings, and commercial properties and holds a California Real Estate Broker’s License, BRE# 01791264. But Roger's expertise doesn't end there. He is also a championship-winning professional race car driver, who used his platform to give back to the community through various philanthropic activities and charities around the greater bay area, including serving as a driving coach for NASA’s Teen Car Control Clinic. He understands the importance of safety, and his coaching has helped new drivers improved confidence and experience on the road which ultimately saves many lives. When you partner with Roger and his team, you can trust that your rental properties are in the hands of an experienced and dedicated professional who always prioritizes the investment goals of his clients. With Roger's knowledge, experience, and passion, you can rest assured that your rental properties will be managed to the highest standard, maximizing returns and minimizing headaches for you as the owner.
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