If you are looking for a great way to make a second source of income, you might want to look into buying an investment property. If you do this, you will be able to increase your equity in two places of residence as opposed to just your primary place of residence.
There are two main types of property investors. The first type is someone who rents out the investment property to family or friends for short time periods. The second type is someone who rents out the investment property to one family for a long period of time as a means of living.
If you’re the first type of renter and are renting your investment property out to family and friends, you will have the freedom to stay in your investment property between renters. Since you will essentially be treating your investment property as a vacation rental, you can raise or lower the weekly prices depending on if it’s during peak holiday times.
If you’re the second type of renter and are renting your investment property out to one family as a means of living, you will have to act as a landlord to your new tenants. This is a very stable form of income as they will be on a lease agreement, but you will also have to be on call more. Overall, this is a great way to make income as someone else pays your mortgage while you simultaneously gain home equity.
If you’re interested in purchasing an investment property, talk to your lender about pre-approval so you can start looking for one today.