3 Creative Real Estate Investing Strategies

When it comes to investing your money, there are numerous possibilities available. Choose the one that works best for you.

Here are three ways to break into real estate and expand your portfolio.

Traditional ways of investing in real estate have a proven track record, and there are many benefits to doing so. However, some beginners or veteran investors may be looking for alternative ways to generate passive income that do not fit into the box of standard real estate practices.

Here are four strategies for expanding your real estate portfolio using creative investing.

1. House hacking

House hacking is the practice of owning a house with multiple units and living in one of them while renting out the others. It has grown in popularity since the revenue flow from your other tenants can cover your mortgage payments, property taxes, and other maintenance and housing expenditures.

However, this type of real estate investing may not be suitable for everyone. You will have to put up with the inconvenience of living with roommates and possibly sharing a kitchen or bathroom.

2. Self-storage units

This creative investment strategy allows your tenants to pick a storage unit, sign a lease, and fill it with their belongings. Tenant management is easy, and you will rarely have to deal with your tenants once they sign the rental agreement.

Self-storage investors can either purchase an existing storage facility or construct a new one, and once the business is up and operating, automation and property management software can handle many of the day-to-day operations for you.

A kitchen is undergoing renovations and the installation of new appliances.

3. House flipping

Flipping properties is another creative real estate investing strategy. This approach, sometimes known as “fix and flip,” refers to investing in a low-value property, fixing it to improve its appreciating value, and then selling it for a profit.

House flipping can be easier than regular rental management since you will not be renting the property out and will simply sell it once you complete your flip. This gets rid of the hassle of tenant screening, rental maintenance and management.

However, house flipping is not the most beginner-friendly of the options on this list. It’s a good idea to talk to contractors and interior designers who can recommend the best renovations that will increase your home’s value the most.