Whether you already own a home or are looking to invest in one, there are plenty of ways you can put your investment to work. There are even opportunities for passive income, meaning you won’t have to put much energy or time into it once the investment is set up. The extra income can then go toward your mortgage or other expenses. It all starts with understanding how you can put your home to work.
Research Real Estate Investments
Investing in real estate is one of the best strategies if you are looking to make a long-term investment because it gives you a consistent flow of cash and has historically appreciated in value. There are also plenty of tax benefits associated with investment properties. The 1031 Exchange tax break can help you keep property taxes low and defer capital gains. Understanding these regulations can help you make the best decision on real estate investing.
Install a Rental Suite in the Home
You can convert part of your home into a rental suite if there is space available. Make sure you research any regulations before doing so. You might need to include a full bathroom and kitchen and put in a separate entrance. But once you have these things set up, everyone will have more privacy than if you simply got a roommate. You can also get more money than if you had a roommate, because each person will have their own space.
Still, since this is meant to be a rental property investment it’s best to do some calculating to figure out how much income you may make by doing this. Calculate when you will break even after you have taken out any costs of installing the rental suite. You can use online comparison tools to figure out what the market rate is for rentals in your area.
Rent Out to Tiny House Owners
Tiny homes can be more appealing than a rental, but it can still be challenging for owners of tiny homes to figure out where to place their homes. You can rent out part of your lot to tiny home owners if your space is large enough. You might be able to get even more if you can provide hookups to utilities.
Rent Out a Driveway or Yard
You can rent out extra space you don’t need with online sites, where you can list a parking spot on your driveway. You can charge a monthly, hourly, or daily rate. This is especially helpful if you live near a school, major attraction, public transportation, or place of business where commuters may need a space to store their car.
Tourists or residents of metro areas may be more willing to park on someone’s driveway instead of having to pay for a garage or overpriced spaces. You can also rent out all or part of a yard. If there is a renovated barn, pool, or nice outdoor space, you can advertise the space for a daily or hourly rate. Of course, this might not cover all your insurance or mortgage payment, but it can help you pay for some maintenance on the property.