Do you lose sleep worrying about how you will afford retirement ? Creating passive income through real estate investing can help reduce anxiety about your financial future with a little planning and resourcefulness. The goal of investing in Pittsburgh real estate is twofold, creating long-term passive income for your retirement while increasing your monthly income. If you are interested in building a nest egg for your retirement and earning more right now, perhaps real estate investing is something to consider.
Investors in Pittsburgh have several options to choose from that will best suit their vision of their investment business. If you enjoy building relationships, becoming a property owning landlord may allow you a more hands on approach to investing. Other investors may prefer less daily interaction and prefer an even more passive style of investing.
We will review a few ways investors can create passive income in 2023 with Pittsburgh real estate.
Rentals
For those who have excellent communication and people skills, you may be interested in managing your rentals, hiring out whatever responsibilities or repairs are beyond your area of expertise. While increasing your monthly income as your tenants pay down your mortgage, rental properties are a lucrative means of creating passive income in 2023 with Pittsburgh real estate. With a comprehensive screening system and prompt attention to any maintenance or other problem area, being a landlord can be an enjoyable experience. Another great benefit to being a landlord is your income stream has built-in security against inflationary fluctuations. When you look towards your retirement years, you can have peace of mind knowing rental rates tend to rise when living costs increase. You can also look forward to a significantly increased monthly income because eventually, your Pittsburgh rental property will be free and clear of the payments on the mortgage and provide you with ever-increasing returns.
Flip Properties
One method to create passive income in 2023 with Pittsburgh real estate is to locate distressed homes among high-demand rental areas, rehabilitating them and converting them into viable rentals to appeal to the current demands of tenants. The more amenities you can provide, the higher the return you’ll have on the investment. The goal is to buy at a low price and turn the property into a high-end rental. Known as the BRRR method, buy, rehab, rent, refinance, repeat. This method supports the growth of wealth by using the quick building of equity to add another property to your real estate portfolio. Suppose you are a hands-on type and want to get involved in actually doing the work on properties, especially with a background in construction. In that case, this investing style might be your niche, remaining fresh and exciting as you move from property to property.
Owner Financing
Owner financing is a fantastic way to open the door to an entirely different tenant pool to create passive income in 2023 with Pittsburgh real estate. These contracts typically appeal to buyers not quite ready for homeownership, offering a two or three-year period to straighten out credit issues or save towards a down payment. While paying a higher price for the property and higher rent, these tenants make the best renters because they know they will eventually be the owners. For this reason, the chances are that they will care for the property and be respectful to neighbors, causing you little to no trouble as a tenant. To avoid misunderstandings as the deal progresses, be straightforward from the start about responsibilities and expectations. You can simply explain that you are offering this opportunity to ensure you have a retirement and that they cannot call you at all hours as they would a typical landlord. You can’t afford to replace light bulbs and door handles. Be sure the contract states this clearly and they are in agreement. Often they are responsible for repairs that are under a specific limit, such as $5,000.
Data Driven Deals
Working with Data Driven Deals is the best way to create passive income in 2023 with Pittsburgh real estate. If you have concerns about investing in Pittsburgh real estate and creating passive income, or you have credit problems that need a solution, Data Driven Deals can help you find a way to reach your brighter tomorrow. We make it easy to succeed because when you work with Data Driven Deals, you get an entire team of highly reviewed professionals from every walk of the real estate and construction industry. Data Driven Deals can help you with as much or as little of your investment property management as you wish. From locating properties, inspections to appraisals and even rehabbing and cleaning up the site, Data Driven Deals can handle everything for you. As a bonus, Data Driven Deals has a steady inventory of the best properties available for whatever type of real estate investment you dream of in Pittsburgh. Data Driven Deals will answer your questions with no obligation whatsoever. Call Data Driven Deals at (480) 764-1199 or send us a message today.