Real estate offers many exciting ways to earn a return on investment, including highly creative niches that provide impressive results; some can equal or exceed traditional market sectors. And these creative niches offer other benefits—for example, combining your hobby or other business enterprises and enjoying lower overhead costs while building wealth.
Another benefit of branching out is the added security against an economic downturn in any one sector; the others can carry you through. Rental properties build in a layer of protection against inflation because rents tend to keep pace with increases in the cost of living with little impact on your monthly cash flow. Please note that this article is for informational purposes, not financial or legal advice.
So read on as we explore these three creative real estate niches that investors like you should know about in Minnesota in 2023.
AirBnB
AirBnBs present an excellent real estate opportunity for investors in Minnesota. With technological advancements, online platforms and user-friendly apps have streamlined the short-term rental process for travelers and real estate investors. These platforms offer checks and balances, ensuring both parties are protected during the rental process. Inventive methods, including keyless entry, have evolved to provide privacy and social distance, which have become the new norms in travel lodging.
Investing in Minnesota real estate to use as an AirBnB rental can yield high returns. Since tenants stay for shorter periods, there tends to be less wear and tear, resulting in lower maintenance costs. However, it’s crucial to focus on the location of your AirBnB investment to ensure bookings are not an issue. Professional buyers such as those at Matt Buys Houses MN can help you identify the right property in Minnesota that aligns with your AirBnB investment strategy.
Self-Storage
If you’re an investor in Minnesota, it’s worth considering the benefits of investing in self-storage properties. These properties offer a range of advantages, including low operating costs and potential additional income streams. With a little creativity, you can leverage these benefits to maximize your returns.
One way to generate additional income from self-storage properties is to sell moving supplies, such as boxes and locks, to tenants. These products complement the self-storage business and can provide a steady stream of revenue. Additionally, insurance products and other related services can be offered to tenants, further increasing the profitability of your investment.
To make the most of your self-storage investment, it’s important to work with a team of experienced professionals. The professional buyers at Matt Buys Houses MN are local real estate experts with a deep understanding of the Minnesota market. They can help you identify the best location for your self-storage property and guide you in making informed investment decisions. With their expertise and support, you can unlock the full potential of your self-storage investment and achieve long-term financial success.
Mobile Home Park
Mobile home parks are an often-overlooked real estate niche with impressive profitability potential. Cash-on-cash returns, which measure the net income against the initial cash investment, can be as high as 20 percent annually in mobile home parks. This is a remarkable return on investment that few other real estate investments can match. Moreover, tenants in mobile home parks typically own and maintain their own units, which means they have a vested interest in staying long-term. This translates into more stable rental income and less turnover, which can save you time and money on maintenance and marketing expenses.
Working with expert negotiators like the professional buyers at Matt Buys Houses MN can help you make the most of your mobile home park investment. They are well-versed in the local market and can identify promising investment opportunities with high profitability potential. Furthermore, competition among buyers for mobile home parks is often lower than other types of real estate investments, which means you may have more leverage during the purchasing process.
If you’re looking to build wealth through a diversified real estate portfolio in Minnesota, why not partner with the experts at Matt Buys Houses MN? Their full-service, in-house team of industry specialists can help you navigate the entire investment process, from identifying promising properties to managing your investment portfolio for long-term success. With their guidance and expertise, you can relax knowing that you’re on the path to a golden retirement. To learn more, call Matt Buys Houses MN at 612-293-3532.