Investing in Real Estate Series — Week 5

Before making any major decisions about diversifying your investment portfolio, consult a certified financial planner to ensure your strategies align with your long-term goals.

When it comes to real estate, there are countless ways to invest, but these are two of my all-time favorite approaches.

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1. Buying a Vacation Property

Do you find yourself drawn to the same beach town every summer? Or perhaps you can’t resist the charm of a ski village during the winter? If so, owning a vacation property could be a rewarding investment for you.

I’m not talking about a traditional second home, but rather a vacation rental property. Think of a home that you rent out most of the year and enjoy personally for a few weeks or weekends annually.

With platforms like VRBO, Airbnb, and even corporate rental services like Zeus and Sonder, it’s never been easier to turn a vacation property into a profitable investment.

Here’s what makes this strategy appealing:

• Dual Benefit: Earn income while also enjoying the property during your downtime.
• Tax Advantages: By structuring the property as an investment rather than a second home, you may qualify for additional tax benefits. Be sure to consult a qualified CPA to understand the rules and advantages. (Need a recommendation? Reach out to me [insert link]!)
• Lifestyle Perks: Not only does this strategy build your wealth, but it also allows you to create memorable experiences with family and friends.

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2. Investing in a Fix-to-Rent Property

If you love the idea of combining the excitement of home renovation with the stability of long-term rental income, investing in a fix-to-rent property might be the perfect strategy for you.

This approach involves purchasing a property that needs some TLC, completing renovations to improve its value and functionality, and then renting it out to generate steady income.

Why Choose Fix-to-Rent?

• Build Equity Faster: By purchasing a property below market value and increasing its worth through renovations, you can build equity more quickly than with a standard rental.
• Higher Rental Income Potential: Well-renovated properties typically command higher rental rates, especially when the upgrades match what tenants in your area are looking for.
• Tax Benefits: Like other rental properties, a fix-to-rent investment allows you to deduct expenses such as repairs, property management fees, and depreciation, which can reduce your taxable income.

Steps to Succeed with Fix-to-Rent

1. Find the Right Property: Look for homes in desirable locations like Newnan, Peachtree City, or the southside Atlanta suburbs. Focus on properties with solid bones that need mainly cosmetic updates.
2. Plan Renovations Wisely: Prioritize upgrades that tenants value, such as modern kitchens, updated bathrooms, and energy-efficient systems. Avoid over-improving; the goal is to strike a balance between cost and return on investment.
3. Stick to Your Budget: Unexpected costs can derail your profit. Be sure to factor in a buffer for unforeseen expenses during your renovation process.
4. Know Your Market: Understand what tenants in your area are looking for and what they’re willing to pay. This knowledge helps you make strategic renovation choices and set competitive rental rates.
5. Leverage Professional Help: Consider working with a property manager to handle tenant screening, leasing, and maintenance. This ensures your property remains a profitable, low-stress investment.

Benefits of Fix-to-Rent in Southside Atlanta

With the growing demand for rental properties in southside Atlanta, including areas like Newnan and Peachtree City, fix-to-rent investors are well-positioned to capitalize on a strong rental market. The area’s mix of suburban charm and proximity to Atlanta makes it attractive to families and professionals alike.

Additionally, rising property values in these communities mean your investment could appreciate over time, further enhancing your return.

Fix-to-rent is an ideal strategy for investors who enjoy hands-on projects and are looking for a way to generate consistent, long-term income.

If you’re interested in exploring this approach, I can help you identify undervalued properties, estimate renovation costs, and connect you with trusted contractors. Let’s work together to build your real estate portfolio and secure your financial future. Schedule a time to chat today [insert link to calendar]!

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3. Moving and Keeping Your Current Home as a Rental

If I had to pick just one investment strategy, this would be it. It’s simple, effective, and something I’ve personally used multiple times.

Here’s how it works:
Life changes, and so do our housing needs. Instead of selling your current home when you’re ready to move, consider keeping it as a rental property while purchasing your next residence.

But what about financing?

You may wonder, “Won’t I need to sell my current home to afford my next one?” Not necessarily. By working closely with your real estate advisor, lender, and financial planner, you can explore financing options that allow you to keep your current property.

Why is this strategy so effective?

• Lower Costs When You Buy: Purchasing a home as your primary residence typically requires a smaller down payment and offers lower interest rates than buying a pure investment property.
• Build Wealth Over Time: As a rental property, you’ll benefit from tax advantages, tenants helping to pay down your mortgage, and long-term equity gains.
• Flexibility: This strategy allows you to adapt as your needs evolve, without immediately parting with a valuable asset.

Important Considerations

Lenders require you to live in a property for a certain period when you purchase it as a primary residence. Always be honest about your intentions—loan fraud is serious. My recommendation is to buy a home with the intention of living in and loving it for several years. When the time comes to move (whether it’s five or ten years later), evaluate whether keeping it as a rental makes sense for your financial goals.

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Ready to Explore Real Estate Investments?

Let’s work together to build your real estate portfolio and secure your financial future. Whether you’re dreaming of a beach getaway that pays for itself or building wealth, invsting in a flip to rent, or by retaining your current home as a rental, real estate offers endless possibilities. Schedule a time to chat with me today!