1. Buy and Fix Up a Home
Flipping a house like you’re on HGTV is as hands-on as you can get for an investment. You buy the property, you put funds into fixing it up, and sell it for a profit.
Ideally, anyway. Fixing a home requires funds beyond the initial investment, and more time than you might have. It’s a process, and one that requires a solid knowledge of real estate and home improvement. Even profitable flips can seem like money losers for a long time. Patience is crucial if you’re going to commit to a fixer-upper.
2. Rent-to-Own a Home
Rent-to-own is a tactic where you sign a contract to rent a home for a predetermined period of time with the option to purchase the home once that time expires. Often, that option is a requirement, a promise that you will be buying the home.
A percentage of your monthly rent payments go toward the down payment on a mortgage when the purchase becomes official.
Rent-to-own agreements come with risks, but they’re good for people who cannot currently commit to buying a home. This gives people with other loans (credit card debt, hospital bills, etc.) time to pay those off without the added financial burden of a monthly mortgage. Comb through the rent-to-own contract carefully to make sure the details are in your favor, and it has the potential to help you ease your way into an investment.