Today’s first caller owns a few paid off rental properties. Should he pull the equity out to grow his portfolio, or would he be better off selling them and buying in a better market? That’s the first question I’m answering on this Q&A episode!
This episode of Investing in Real Estate features three great listener questions on strategic portfolio growth, turning a property into an Airbnb, and how much it takes to invest. Click play to hear my answers to your questions on this episode!
On this episode you’ll learn:
- How to approach portfolio growth strategically.
- What to consider before turning a condo into an Airbnb.
- How much it costs to start investing.
How to Approach Portfolio Growth Strategically
I believe it’s smart to constantly be evaluating your portfolio and implementing changes. Sometimes you might have a property that has appreciated greatly, in which case it might not be performing at its full potential from a cash flow perspective. You might be able to utilize a 1031 exchange, make a great profit, and maximize your cash flow. We have a 1031 exchange program, and we’d be happy to talk to you about your options.
What to Consider Before Turning a Condo Into an Airbnb
The first thing I would suggest you do is speak with your homeowners association. Many HOAs will not allow you to do short-term rentals, so I’d recommend making sure you’re allowed first.
Short-term rentals like Airbnb can be great if they’re managed properly, but it’s a totally different strategy than long-term rentals. Here are some resources for you to check out.
How Much It Costs to Start Investing
Before you invest, make sure it makes sense from a numbers standpoint. You’ll want to be sure you’re in the right markets and making a great return. I highly recommend investing in landlord friendly states with job growth, job diversity, and low crime. With our company, if you want cash flow, I’d recommend having a down payment of around $45k.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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