Investing in real estate is a very common way for people to build their wealth and have a great investment. This is a great way to invest as the house that is purchased can be making money from a number of ways. The most common ways, in which money is earned for an investment is to purchase the house and rent it out for passive income, while watching the property accumulate appreciation.
Investing for different purposes
In the Northern Virginia and Washington DC area there is a need for houses for people as the area continues to grow. These people that are moving to the area are not always looking to purchase a house, so renting a house is the way that they go. This area of Northern Virginia and Washington DC is a wealthy area and continuously growing.
- Real Estate Investment for Passive Income: Passive income is a regular income that requires little effort in order to obtain that income. This way of investing is done by purchasing a house and putting some work into it and then renting it out. Renting out a property does not require much work and lets you live the life you had before. The only difference here is that this investment pays back every month in the form of rent.
- Real Estate Investment for Long Term Equity: Purchasing a property such as a house and renting it out as an investment is a great option for long run equity. For the long run, this is essentially just having a property and holding on to it for a long period of time. This allows the rent payments to keep flowing in as well as allowing the price of the house accumulates before the property is sold eventually. This is a great option as it allows for the mortgage of the house to be paid off before it is sold for a profit.
- Real Estate Investment for Wealth Building: Purchasing these houses is a great form of an investment and also a great way to build wealth. The wealth building can take time though. Most people that are in the real estate investment started with just one house that they owned and rented out. Many go on to purchase more houses for the same investment and continue to grow their portfolio. Investors in real estate may have up to 50 different properties that they own and one time.
Within real estate investment there are a few ways in which you can approach this investment. It can be a side income for passive income, or something that is done for some relatively quick profit, depending upon it’s location and demand in the market. This investment can be used in the long term to build equity and keep on making a profit off of the houses. There is then the option of wealth building and expanding a portfolio of homes for an investment.