5 Ways to Make Money From Your Property

Thinking outside the box may provide you with a new source of income.

Photo by Taryn Elliott

(SALEM, Ore.) - Finding the best way to utilize a property can be challenging. Ultimately, we want to make as much money as possible with minimal involvement.

But as it usually goes, to make high profits, you must spend days working on the project or take extremely high risks. So, what’s the solution?

It all depends on your available time and desired returns. People who want to kick back and chill will go with long-term rentals. Airbnb and property flipping are much better for homeowners who don't mind getting their hands dirty.

Please take your time and check all the options on this list. Each can provide a certain value depending on the current market and other factors.

1. Long-term rentals

Long-term rental is also unique for people who have stressful but well-paying jobs. When you get back from work, the last thing you want is to argue with unruly tenants. So, by finding a nice family and signing a one-year lease, you can put your mind at ease for the upcoming period.

2. Short-term rentals

Although managing Airbnb apartments is arduous, especially if you have several properties, it can be the most lucrative method. Short-term rentals can make you a small fortune at the seaside or in a winter resort.

This approach is also fantastic if you have an apartment in a large metropolitan area. For example, people rent properties in New York for more than $200 a night. The average occupancy rate of 55% to 60% means you can make more than $3000 every month!

3. Reverse mortgage

When you sign the contract, the reverse mortgage company gets ahold of your apartment or house. You can stay there for as long as you live, but they’ll gain possession of the property when you move out or pass away.

The best thing about the reverse mortgage is that the process is relatively straightforward and works for everyone. A homeowner receives an infusion of money to provide extra comfort during retirement, while the company gets a property below the market price.

You can get cash in just a few days, and you don't have to bother with tenants and potential buyers.

4. Buying land

While this approach can make you enormous profits with minimal involvement, it also has its fair share of risks. Most notably, you're betting that the price of land in a specific area will increase in the upcoming period.

If that doesn't happen, you're left with an empty plot in the middle of nowhere that no one wants to buy.

Buying land can be a great way of making money, but you need to understand the local market well to utilize it properly. Sometimes, the buyer is forced to stick with a property for much longer than initially intended. This could be disastrous if you had other investment options.

5. Property Appreciation

You can use it with most previously mentioned approaches, such as Airbnb and long-term rentals.

This is the process of upgrading, renovating, or modernizing your home. Homeowners can do many cool things with their property, such as building new sections or installing security systems.

Even applying a fresh coat of paint can go a long way when making a transaction.

The best thing about property appreciation is that it provides value even if you decide not to sell. If you get last-minute cold feet, you can kick back and enjoy all these new amenities!

Source: Salem-News.com Special Features Dept.