How To Start Investing In Real Estate With Pocket Change

Right after cryptocurrency and the stock market, one of the best things to invest in today is real estate. Why? Because in the world we live in today, properties involved in real estate appreciate in value.

However, it is very sad that very many people hesitate to get into real estate. Their reason? They believe they need to have a lot of experience in the field of money before they can have a turnover of passive income.

Fortunately, they are wrong. Investing in real estate is not rocket science. It is a thing that can be done even without experience in the field and with little cash.

With my experience in the industry, I have seen it happen over and over again. So I know how it can be done. And that is what I’m sharing in this article.

Consider House Hacking

Get a place with several units you can live in and rent to other people. This can either be a duplex or a multiplex, and you can purchase it with the aid of loans where you have the opportunity to pay next to nothing.

If renting out the units as a whole is not enough, you can try renting out individual rooms if you can find people who are willing to pay for it. You can even rent out your guest house or places on your packing lot.

The great thing about this is that you can avoid many of the stringent regulations surrounding real estate investment since you’ll be living in the house yourself. You can also monitor your tenants better. Besides, you don’t even have to live in the house for a long time.

Master Leasing

While house hacking requires you to actually be the owner of the house, master leasing is one of the surest ways to make a little money in real estate without owning a property.

The process is simple, all you need is to rent a place and get your landlord to give you the go-ahead to sublease the property. This method of investing in real estate is actually very common.

For example, let’s say you get a 3 bedroom apartment for $2000 per month. You can rent out the rooms that you’re not using for $800 per month and pay $400 yourself as balance.

What I love about master leasing is that you don’t need much money while you’re negotiating. All you need is a little money in the form of a prepaid rent security deposit or any such petty payment to get started.

Live-in House Flipping

This method allows you to convert your residence into a house-flip. The process is simple. All you need to do is to buy a house, live in it for a couple of years, and sell when the value is higher.

What I find amazing about this technique is the huge tax free profit you’re likely to enjoy from it. As an individual, you can enjoy up to $250,000 profit after sale and as a couple who happens to file their tax jointly, you can enjoy up to $500,000 tax free profit.

You can also combine master leading with live-in flipping by having an agreement with the owner which allows you to pay for the house in parts for a couple of years.

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