Investing In Strip Malls Is A Way To Make Stable Income
When you have a sum of money you are looking to invest into real estate, you certainly have options. Anything from homes you might flip to office properties you rent out to corporations all await investment money, but if you’re looking to buy something and hold onto, then investing in strip malls is a way to make stable income. Anything with individual units is a location that can provide you multiple streams of income from businesses and organizations renting and leasing spaces. You’ll have to cover property maintenance and lawn care, but the more units you fill, the more money you make.
The ideal Properties
If you’ve invested in single properties before, then you know that not every deal turns out to be a winner. Renting out a home to tenants can cost money if the home has issues you didn’t know about or property values plummet, or if your single tenant stops paying their bills and it takes months to evict them. You’ll eventually get them out through the courts, but you’ll never replace those months of lost income.
If you have a strip mall with nine subsections you can lease out, then just filling two-thirds of them means you get six streams of income. If you are able to finance and manage the property in such a way that it only costs you five of those units to pay for it, then the rent and leases from the other four are pure profit.
Of course it’s best to do what you can to fill all nine of those units. When the property is full, each business that is there gets more foot traffic from the others, and you can use the tight supply to justify start raising your lease prices as renewals come up.
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