With the potential to kick up some passive income and long-term appreciation, real estate investing in Etobicoke and Toronto is rewarding and an excellent way to diversify your portfolio.

If you aren’t sure where to start in your Toronto real estate investing journey, it’s smart to consider a few different routes. Many invest in primary homes as their first foray into real estate but there are many additional ways that you can reap profit from the market.

Here are 7 proven real estate investing strategies that work in 2024.

1. Dig Into The Numbers

Research and study Etobicoke neighbourhoods, property values in the GTA, and trends in Toronto real estate. The more you know about a given area, the more insight you will have into whether a house for sale is likely or unlikely to turn a profit for you. Find neighbourhoods, such as many in Etobicoke, that have affordable properties and strong year-over-year appreciation.

2. Buy A Rental Property

Leasing out a rental property is the simplest way to convert real estate into passive income.

Be sure to find a home that does not have much to do in terms of maintenance and repairs so that your job as a landlord is as hands-off as possible. Though it may be time-consuming and could prove challenging if you encounter problematic tenants, for the most part, it’s an excellent way to enjoy positive cash flow.

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3. Rent Out A Portion Of An Existing Home

If you already own a home, consider renting out a room, the basement, or the attic. With minimal start-up costs, the extra income is a way to pay off your mortgage faster, build equity, and increase your monthly income.

To try this experience out for yourself, start renting out the area you want on a site like Airbnb.

4. Buy And Flip A House

Buy a discounted property in Etobicoke. Renovate it. After a set amount of time, sell it for profit.

If you enjoy home renovations and are able to spot a property’s potential before anyone else, you can net a big return. To do this requires a large amount of cash, reliable contractors to help, and strong cost-estimating skills.

5. Invest In A Real Estate Investment Group

A real estate investment group, or REIG, is a group of private investors who combine their money and expertise to buy income-generating properties for themselves. It allows you to own rental properties, however, you don’t have sole responsibility in managing them.

REIGs allow you to learn from others, however, they often come with membership fees that can eat into profits.

6. Invest Through A Real Estate Investing Platform

Real estate investing platforms allow anyone to throw their money in a pool with others to fund real estate projects and reap returns.

An investor acquires debt or equity in a project and nets a higher return than similar investments. This provides you with a chance to derive monthly or quarterly passive income, however, this type of investing does carry risk and the investments are illiquid.

7. Build An Additional Unit On Your Existing Land

For real estate owners with extra space on their property, consider building a laneway house in your backyard or a second unit. This can be attached or unattached and used as a rental, aiding you derive ongoing passive income from where you live but with no interruption to your day-to-day.

This requires a significant upfront cost but is a way to make the most of an investment you already have.

Are you looking for real estate investment opportunities in Toronto? Check out the best South Etobicoke homes for sale with Adrian + Andrea today. Reach out to us at (416) 319-6893 or email info@adrianandrea.com today!