This strategy is, however, risky if you spend too much money on the renovation. This is because you may not be able to sell it at a value high enough to make a profit. Prehabbing Real estate prehabbing is different from rehabbing. Prehabbing is where you make small changes to the property just enough to attract other investors. This may include painting, cleaning, or landscaping. Prehabbing will save you a lot of costs, and you can make a more significant profit upon selling the property. It also involves minimal risk. The setback with this method is that not all properties are suitable for prehab. House hacking This method involves purchasing an apartment with many rooms. You then live in one of the rooms and rent the other rooms. If you are lucky enough, you may earn enough from the rent to cover the cost of the apartment. House hacking is a low-risk investment. However, there are some disadvantages since you will live under the same roof as your tenants. Conclusion Real estate investment has, over the years, proved to be a good investment. The problem, however, is always how to get started due to a lack of information. The good thing about real estate investing is that it’s easy to learn and implement the knowledge in the real market. are the easiest and the best for beginners to invest in. So, you can use this strategy as a way of diversifying your portfolio. The disadvantages of investing in REITs are that you have no control over the investment, and the changing market conditions can negatively impact investment growth. House flipping House flipping involves buying a property, renovating it to increase its value, and then selling it to make a profit. The key is identifying a property with low market value and spending less on renovations. Finance Monthly. Inve s tmen t 49
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