Some Active Real Estate Investment Strategies For You
If you are planning to invest in real estate Oxnard properties or elsewhere, you need to have some investment strategies. There are both active real estate investment strategies and passive strategies that you can follow. Real estate agencies Oxnard share some of the active real estate investment strategies that you can follow while investing. Read along to know more about these strategies.
Buy And Hold
As the name suggests, in this strategy, the investor buys a real estate property to keep it for an extended period. While the property is being retained, it will usually be rented to increase the profit. When the real estate property has appreciated, it can be sold if your plan requires a reallocation or if the local market conditions adjust.
Fix And Flip
To fix and flip a real estate property, you have to pay less than the market value, take care of any repairs and upgrades and then sell the property for a better value. To ensure that the business is profitable, the property rehabber should pay less than the market price of the property and should know how much it will take to renovate the same. While following this real estate investment strategy, you need to have an idea of the properties that are going for in the area.
Long Term Rental
Long-term rental or BRRRR is a long-term lease strategy. BRRRR stands for Buy, Rehab, Rent, Refinance and Repeat. When you plan to increase your investments, you can easily follow the BRRRR investment strategy. However, you need to be qualified to receive a cash-out for this investment strategy to work. The After Repair Value or ARV of the rental should be equal or more than the total expenses for buying and renovating the property.
The property will be refinanced based on the ARV and the difference or equity will be given to you in cash. You can make use of the capital to buy another house and the process repeats. In this investment strategy, you acquire additional assets and increase your lease revenue constantly. After having a substantial investment real estate portfolio, you can outsource its management to have passive income.
A short-term rental is a furnished residence where the renter lives for a shorter period, like less than four weeks. When compared to long-term rental properties, a short-term landlord charges more rent a night. With a fast turnaround of tenants, short-term rental units have to be sanitized and maintained on a continual basis.
Usually, this type of rental is offered to business travelers who are in the area for a few nights, tourists visiting the region, and people who are moving and requires short-term housing. House-sharing platforms like VRBO and AirBnB are welcoming many residential property owners to the short-term rental business, making it a convenient method to try residential property investing.