Imagine if you could somehow fund your lifestyle with property. You could do whatever you want because you have numerous homes behind you. Well, fortunately, that’s becoming a possibility for a larger and growing number of people. Real estate is viewed as a way to get out of the rat race and really enjoy the finer things in life. But how can you fund your lifestyle with property investing?
Flip Properties For Profit
One of the best and most exciting approaches is to flip properties for profit. The idea is to buy something that’s run down in a good area and bring it up to standard using the most affordable methods. This approach is popular among people with experience in building. Often, they can spot opportunities to improve a property and make the most of it where other people can’t, especially if they have skills with foundations and masonry.
Property Investing In Vacation Rentals
You also see more people looking to invest in vacation rentals to support their lifestyles. These properties can be highly lucrative because of the premium short-term renters are willing to pay. Many will hand over up to four times the amount that they could afford for a regular long-term option.
Vacation rentals can be hard to find, but once you have one, you can put it up for rent on sites like Airbnb and Vrbo. These platforms are easy to use and allow you to adjust the rental conditions, depending on your rules and availability.
Rent Out Properties In Your Area
If you have savings for deposits on multiple properties, you can sometimes fund your lifestyle by renting out homes in the local area. This approach works well for anyone who can be nearby to manage everything.
The downside is that you usually need several properties to meet your lifestyle requirements. But if you don’t want to do the work yourself, you can always use management firms.
Offer Lease-To-Own Agreements
If you like the idea of increasing your cash flow and getting your equity in properties back over time, you could adopt a lease-to-own framework. The idea here is to get tenants to pay rent with the option to buy the property later. This generates income for you immediately to cover the mortgage and provides you with a lump-sum payment at the end of the lease (as long as they complete it to the required terms).
Of course, structuring these contracts can be done, but it requires more work. You’ll want to partner with a solicitor for this sort of thing, especially if you want to be a part of a larger scheme.
Try House Hacking
You could also try house hacking if you’re just getting started. The idea here is to buy a property with multiple dwellings, live in one of them yourself, and rent out the rest,
This approach can be highly lucrative for a lot of people. You buy the entire thing, divide it up, making sure each dwelling meets regulatory requirements, and then rent them out. What’s nice is that you’re always close by if something goes wrong or you have poorly-vetted tenants who break the rules.
Lenders also tend to like this option because they view it as less risky. As such, you may find that getting access to loans is more straightforward.
Join Real Estate Crowdfunding
If you’re thinking out of the box, you might also want to join real estate crowdfunding efforts. These allow you to fund projects that can support your lifestyle without having to save up a deposit first. The downside of this approach is that you’ll need to offer the people crowdfunding you with a share of an equity. However, you can make your profit by looking for margin opportunities during the development phase.
Multiple real estate-specific platforms are now available that help people like you find funding opportunities for real estate projects. Many investors using these are looking for quick opportunities to expand their portfolios.
In summary, funding your lifestyle through real estate is possible, but it requires time and investment. Many people have done it though and now enjoy great lives, living the way they want to live.