Rental or Investment Property
With a down payment, a home of your own is possible for only $1000/month. As ridiculous as this sounds, you can earn returns over your monthly costs as a positive investment. This can include reduction on your mortgage and could generate monthly cash flow.
Here is a simple scenario. You purchase a $200,000 townhome with $50,000 down, carrying a $150,000 mortgage. The tenant pays your mortgage and in fact you may have a positive cash flow every month. In ten years your property is worth $400,000. Your $50,000 has become $275,000 and your mortgage is declining. You can use the equity from this first investment property purchase to purchase a second investment property and carry on to more in the future.
Flipping Houses can seem like an easy way to capitalize on real estate investing, but it does take knowledge with construction costs and a quick turnaround. Watch out over building in certain neighbours, you don’t want to be the nicest house on the block.
‘Spec’ Homes and Custom Homes
Building a new home on spec can be a reasonably quick return on your investment. You will need to partner with a registered builder to complete the project. New home builds can be a smoother project than renovating older homes and putting your stamp on the project can be rewarding and highly profitable.