If you’re thinking of getting into real estate investing, or you simply own your own home or a piece of property and wonder how you can make money with it, you’re in luck. There are several unexpected ways to turn a profit from real estate, and we discuss four of them below.
1. The Multi-Family Unit
If not-so-pleasant memories fill your head when you think of your old college roommate, the idea of renting out a portion of your home to someone may not sound like a good idea. The reality is, however, renting out a portion of your home could very well allow you to live mortgage-free once you factor in the rental income you receive from your new tenant.
If your residence doesn’t have extra space to rent out, consider becoming the landlord of a multi-family dwelling. Yes, you’ll have another mortgage, but there’s a good chance your rental income will exceed the cost of the mortgage payment.
2. Storage Space
Got extra space in your basement or garage? Consider renting it out to customers for extra income. Be sure to check the prices of other storage providers in the area so you can set yours lower and draw up a contract that releases you of liability should a customer’s belongings get damaged, lost, or stolen while on your property.
3. Vacations Rentals
Do you travel a lot or own an unoccupied second property? If so, renting your home out on a weekly basis as a vacation rental can really bring in big bucks. Alternately, if you want to vacation on the cheap, consider swapping homes with someone who is looking to vacation where you live. There are websites dedicated to finding homeowners willing to swap homes for vacation.
4. Parking Rental
If you live in an apartment but don’t use its included parking spot, consider renting it out to another tenant for a monthly fee.
If you own property, turn it into seasonal parking for RVs, campers, boats, and other larger vehicles. Renting out this prime real estate will increase your bottom line in no time.
Bonus: Tax Shelter
Paying taxes is never fun, but when you own real estate, you become eligible for some pretty nice tax breaks. Property taxes, mortgage interest, and closing costs are all tax-deductible from your income. Furthermore, it’s a good idea to check with your tax preparer to see if you qualify for any other tax breaks associated with owning real estate.
Owning real estate gives you several opportunities for making a profit. Aside from the obvious investing options, there are unexpected ways to turn a profit from real estate. If you own a home or piece of property, or you’re thinking of getting into real estate investing, be sure to consider the above-mentioned ways to earn money using the property you own.