Real estate
Real estate

Real Ways to Profit from Real Estate (Part 1)

Are you looking to buy a property as an investment? Well, congratulations! You are at the right place and are on the right track. Real estate is probably one of the best investments that you and your family can own. Why? Because there are so many ways you can profit from it, depending on your goals and strategies. Here are a few…


Are you looking to buy a property as an investment? Well, congratulations! You are at the right place and are on the right track. Real estate is probably one of the best investments that you and your family can own. Why? Because there are so many ways you can profit from it, depending on your goals and strategies. Here are a few…

Rental income

This is probably the most obvious one. You can find a property in a good location and have it rented out to tenants with monthly rent higher than your monthly amortization. This gives you a monthly positive cash flow.

Renting rooms

If you rent out your entire house per room, you can command a higher total rental income that renting the whole place to a single tenant. Say, for example, a three-bedroom house can have each room rented out for $300 each, totaling $900, rather than renting the entire house for $750.

Renting to businesses

Businesses are sometimes better tenants if you rent your property out to a well-known or stable business. You can charge higher rent or at least feel safe that they will stick to the contract.

Buying low

If you find a property way below market value or are smart enough to negotiate it at a price below its fair market value, you instantly profit despite the fact that you haven’t realized or enjoyed that profit just yet. Look for foreclosed properties or highly motivated sellers willing to sell at a discount.

Selling high

Whether you bought the property at below market value or not, selling it way about market value is possible if you do smart renovations or stage the property well enough that it raises the perceived value.

Leveraged returns

If you have a rental property bringing in positive cash flow, meaning your rental income is higher than your monthly amortization, your return on your deposit can be faster or higher. Why? Because you are only recouping, for example, just 20% of the property’s value, which is the only amount you put down as equity, and not the 100% value of the property.

Increasing equity and net worth

If you take out a mortgage to finance a rental property, you increase your equity each time your tenants pay the monthly amortization for you. For example, if your down payment is 20% and your tenant has been renting the property for a year, which in turn you use to pay your mortgage, your equity increases to say 30%, and that increases your net worth as your debt decreases.

So, did any of these seven ways to profit from real estate got you excited? That’s just the more obvious ways to earn money from your investment properties. There are more less-obvious ways to profit from real estate. But we will save that for next time. In the meantime, start browsing some properties for sale and try to learn how you can afford your real estate investment.

Real Estate, redefined

Whether you’re buying as an investment property, or just because you’d like somewhere new to live, let us here at Domobase make it easier for you. We connect you with only the very best Real Estate Agents and Landlords, meaning you’re only shown the very best properties that fit your requirements as closely as possible. How do we make it easy for you? By keeping it simple. All you need to do is download our app, fill in your details and link up your social media profile. within a few days, we’ll have up to three first-rate industry professionals get in touch with you. That’s all there is to it.


Jeff is a full-time family man by day and a multipotentialite by night. When not writing for Domobase, he's usually creating music, learning new skills, or working on his businesses till the wee hours of the morning.