Residential Real Estate Investing

Written by Jessica Duquette
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Residential real estate investing may not bring in the same amount of passive cash flow but it can have a dual purpose for investors. Investing in a secondary home can generate additional income while at the same time having the added benefit of serving as a vacation home. Condos, cottages and multiple family homes are popular choices for residential investments.

Residential Real Estate Investing in Cape Cod

Take Cape Cod for example. For residents living in New England, the Cape is the ideal getaway. It's far enough away from the city but only separated by a short, two-hour drive. Unfortunately homes on the Cape are quite expensive.

Investors can offset this cost through residential real estate investing. Purchasing an ocean front cottage may cost $600,000 but a real estate investor could cover the second mortgage for duration of the year simply by renting the property out throughout the summer months. Many cottages rent for as much as $2,000 per week during peak season.

Earn Income, Take Vacation

With residential real estate investing a vacation is always a possibility. Since the mortgage payments are covered by vacationers, family trips won't cost a fortune. Investors can earn money off rentals or keep the property private for one season and enjoy the peace and quiet with family.

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