Looking for a unique approach to a cash-flow positive investment property? Here are a handful of approaches beyond the traditional landlord/tenant relationship.
Now is an excellent time to invest in a property. Whether you’re an all-cash buyer or looking to lock in a favorable rate on a loan, there are perfect properties out there you can leverage into a cash-flow-positive asset.
If you’ve ever considered owning a rental property, but haven’t much liked the thought of a traditional tenant/landlord relationship, perhaps some of these alternative ideas will spark your imagination.
- Vacation rental: There’s no need to take on long-term renters when you use your investment property as a “bed and no breakfast” accommodation for travelers. Services like AirBnB and HomeAway are great places to list your property, or you can arrange for local marketing and management yourself. If you’re considering this type of rental investment, be sure to look for properties close to amenities that tourists would consider a plus. (Especially restaurants, parks, shopping, etc.)
- Corporate housing: Are you in a city with big business handy? Forming a relationship with local firms is a great way to generate cash flow for short-to-intermediate term occupants. Executives or small teams visiting from other cities can get tired of the hotel life, and having a residential option close to the office is great option.
- Dorm-style rental: Rather than rent to a single tenant, consider providing a furnished living space for multiple tenants who might not be able to afford a house on their own (and don’t mind sharing communal spaces). The aggregate rent from 2 – 4 tenants can often exceed the rent you might secure from a single occupant. Naturally, there are somewhat trickier management hurdles with this option, but the extra cash annually can make it worth your while.
If you’re curious about properties in the market which may be ideal for any of these three scenarios, get in touch with me, your trusted local real estate professional, by phone at (905)940-3599 or by email at firstname.lastname@example.org today. I’d be happy to help you optimize your investment property strategy by helping you with your search.