5 Smart Real Estate Investment Options in Seattle
Investment in real estate has provided Seattle investors a passive income. When it comes to buying a property, there are several real estate investment options to choose from.
Knowing which options work best for you could lead you to significant monetary benefits. Whether you are going in with a ton of cash or a small amount of money, it's essential to have the basics nailed down before diving into actual investment.
Positive Figures
Located on the West Coast, the seaport city of Seattle is home to nearly 745,000. With an annual growth rate of 2-3% it consistently ranks as one of the fastest-growing cities in the United States. Interestingly, according to a recent report, nearly 54% of the population are renters.
Additionally, the city ranks high on the safety index. The housing market is safer than only 3% of the US cities. What all this means for investors is that your investment is not only safe but could potentially grow over the years.
Below are a couple of real estate investment options you can use to get started:
Residential Properties
Most first-time investors tend to favor purchasing residential properties. What attracts this class of investors is that you don't require large sums of money to own a property. Additionally, any rent derived from the property can cover the mortgage and maintenance costs.
Commercial Real Estate
Compared to residential real estate investment, commercial real estate investment is rather expensive. What investors love about this option is the security. Irrespective of how the economy is, there's always a willing tenant- large, medium, or small- eager to rent out space on your premise.
Real Estate Investment Trusts
Commonly referred to as REITs, this alternative is characterized by individuals purchasing "units." These could be in residential housings, hotels, shopping malls, and office buildings. Think of it like investing in stocks. Each year, you receive dividends. What's attractive about REITs is the ease and simplicity of investment.
Single or Multifamily Units
To a novice investor, the leading benefit of single-family rentals is that they tend to cost less, thus requiring less upfront capital. Similarly, multi-family rental properties offer investors the ability to scale much faster.
With multi-family rentals, you also benefit from the economies of scale, i.e., if you're to fix a roof for 20 units, you have to contend with only one roof.
Property Flipping
Also known as turn-around, as the name suggests, investors purchase a property, renovate it and sell it at a profit. It offers a quick means of generating profits, which can go into purchasing other real estate positions.
Despite this, it should be noted that this method is best suited for individuals with vast experience in residential real estate investment. Why? Because you will need to spot the best entry points, market the property, and methods that sell faster.
Nothing is guaranteed in life. But, you come as close to a guarantee when it comes to real estate investing. However, don't go fast. Take your time to learn the ropes before investing your hard-earned cash.
