Real Estate Beyond the Single-Family Home Purchase

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As a real estate advisor, I’ve spent years helping others find their dream homes, but in 2024, I took a bold step toward becoming a mini real estate mogul. It all started when I stumbled upon a condo with tons of potential. The property had fallen out of contract because a hefty community assessment complicated financing for the previous buyer.

Spotting an opportunity, I ran the numbers, weighed the risks, and made a lowball cash offer. Knowing I could cover the assessment out of pocket, I went for it — and secured my first investment property. That experience opened my eyes to the possibilities of real estate investing — not just for seasoned professionals but for everyday people like me.

Real estate investing might seem like a luxury reserved for millionaires, but there are creative, accessible ways to build wealth over time. Here are some ideas to inspire you.

1. Turn Your Home into an Asset
If you own your home, consider renting out a spare room through platforms like Airbnb or VRBO. You could also host traveling professionals, like nurses or corporate workers, for longer stays. It’s an easy way to dip your toes into real estate investing.

2. Invest in REITs
A Real Estate Investment Trust (REIT) lets you invest in income-generating properties — like malls or office buildings — without the hassle of ownership. Buy shares like stocks and earn dividends, all while skipping the tenant and maintenance headaches.

3. Consider House Hacking
Buy a multi-family property, live in one unit, and rent out the others. Tenant rent can offset your mortgage, making your living expenses lower — or even free!

4. Buy Land
Investing in vacant land might not sound thrilling, but it offers big potential. You can lease it for farming, develop it, or hold onto it until the value rises — especially in growth areas.

5. Try Crowdfunding
Real estate crowdfunding platforms let you pool money with others to fund large projects, like apartment complexes or commercial buildings. Some platforms allow investments as small as $500, making this a beginner-friendly option.

6. Purchase a Vacation Rental
Always dreamed of a beach house or mountain cabin? A vacation rental can double as your getaway spot and a source of income when rented out part of the year. Bonus: You may enjoy tax benefits too.

Start Small, Dream Big
Back to my story: my offer on the condo was negotiated up only slightly, and I secured a fantastic one-bedroom property in a great neighborhood. Today, my son lives there and pays me rent. In a few years, I’ll likely have substantial equity. The point is you don’t need a fortune to start investing in real estate. By learning the risks, rewards, and starting small, you can make real estate a profitable part of your financial future.

Engle & Volkers is a luxury real estate brand connecting clients around the world with the homes of their dreams.

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Mike Rego has worked at East Bay Newspapers since 2001, helping the company launch The Westport Shorelines. He soon after became a Sports Editor, spending the next 10-plus years in that role before taking over as editor of The East Providence Post in February of 2012. To contact Mike about The Post or to submit information, suggest story ideas or photo opportunities, etc. in East Providence, email mrego@eastbaymediagroup.com.