Real estate investment is a fantastic way to generate passive income.

Did you know that 90% of the world’s millionaires have created wealth by investing in real estate? Have you ever thought about investing in real estate? Well, I did recently and I thought you might be interested in discussing the criteria I used when selecting my investment property.

First, the golden rule of real estate is location, location, location. When you’re investing, a property in a great location will not only hold its value but also increase in value. I chose a location near the beach, at the Jersey Shore in Long Beach Island. This location is a popular vacation spot. Even better, it’s within a two-hour drive of over 20 million people, giving me access to a huge pool of prospective tenants.

Next, you have to calculate your return. You want to take a worst-case scenario on the rental income that you expect to collect and then deduct from that the expenses you’ll incur to keep the house going. Ideally, you’d like to be cash flow positive. But breaking even is fine because you will still win from the increase in the market value of the investment property itself over time.

“90% of the world’s millionaires have created wealth by investing in real estate.”

I decided to go with a short-term rental property. It’s much more work than going with a traditional property that leases for 12 months. However, the returns are greater. It also gives me the added benefit of allowing my family to use the property as well. It’s a combined enjoyment vacation home, and I earn passive income. For me, that’s the best of both worlds. Short-term rental properties are booked more frequently and rent for a higher rate if they look stylish and have desirable amenities.

I chose a house on a very quiet corner with spectacular sunset views over the bay from its great rooftop deck. It’s a short walk to the beach and a huge number of shops, restaurants, mini golf, coffee shops, and ice cream. I was able to get this property for a good price because it was a 1980s construction that needed a refresh. After renovating the kitchen and bathrooms, eliminating all the popcorn ceilings, and adding a gas fireplace, I doubled the rental rate.

There are so many real estate investment options out there. If you have any questions about this topic or real estate in general, please feel free to reach out to me by phone or email. I would be happy to serve as your resource for all your real estate needs.