Everyone will invest in real estate at some point in their life. When people purchase a house via mortgage payments or sign a lease for an apartment complex, they invest in real estate. However, rather than do it to keep a roof over your head, you can also turn a profit from it. Investing in real estate is one of the best ways to have a passive income and increase the number of assets you have. However, real estate investment isn't something to take lightly, regardless of what you read online. But if you know what and where to look for, your chances of success can increase tenfold. Here's a beginner's guide to investing in real estate in the south.
Why the South?
First and foremost, you might wonder why we mentioned the south in particular. Compared to most places, the south is often regarded as one of the best areas to live in the U.S. This is for various reasons ranging from pleasant weather to affordable cost of living compared to pricier areas to the north. There are many southern cities to choose from with low cost of living rates. Both make excellent selling points when it comes to investing. We'll go into more detail a little bit later.
Ways For You to Invest
One of the reasons why many are investing in real estate more these days is because of how lucrative and flexible it is. First-time investors often have a hard time figuring out which is the best option. The truth is that each method is perfectly viable for beginners, as it's all a matter of personal preference. Here's a brief list of ways you can invest in real estate:
- Real estate investments trusts (REITs)
- Purchasing shares in a rental property
- Flipping old houses
- Renting out a single room
- Purchasing an entire apartment complex
The last option can be a bit much for newcomers, given the price of it, but that doesn't make it a bad one. Though it's worth mentioning how much easier it is to invest in individual shares. House flipping is where you look on the real estate market for old, vacant homes. These homes can be bought for minimal cost due to their condition. The whole gimmick of house flipping is to make a rundown house livable, and the investment is all the hard work you put into it. What work must be done depends on the house's issues.
However, there are also other factors to consider as well. The cost, demand, location, and ROI are the top concerns many investors have, especially regarding house flipping. Property taxes are also among these concerns, but interestingly enough, they're not as important as you'd expect. When looking for homes to flip, you want to ensure they have the lowest property tax rates. However, property taxes are a whole other ball game you need to be attentive about. You can review a guide on how property taxes work for every state in the south.
Best Areas in the South to Invest
Now that you have a general idea of what investing in real estate is, let's get into the best places to start with. Remember how we mentioned that the south is filled with areas that have warm weather and more affordable costs? You'll be happy to know that's not all there is to it. The south has much open space making it one of the better choices for people looking to enjoy comfortable home life. Being in the city may be convenient and luxurious in its own right, but the costs are way too high in today's era. It can also feel like it's cramped and too small at times. You’d be amazed to know how many people leave these areas for this reason. Combined with the other reasons we mentioned, the south is a prime area for investment real estate. Below is a quick list of some of the best states for real estate investing:
- Texas
- California
- Tennessee
- Oklahoma
- Virginia
- North Carolina
- Florida
- Arkansas
Each one of these areas has plenty of real estates to choose from. While some may be more profitable than others, the choice is ultimately up to you. However, we must tell you how important it is to research each state and its respective areas. More specifically, the area within the form must be included in your strategy. Every room has its interest rates as well as rules and regulations. In some states, they even require a license while others don't.
