Space is one thing that people will always need. From the need to establish a home for oneself to needing some sort of space to do your work when in business, it is not surprising why there can be serious cash made when dealing in real estate. Space and property, both commercial and residential, are a need in this economy. In fact, one can expect that the real estate market will perform well in 2018. In the Top 10 Predictions for 2018, a report issued by Colliers International PH, it was cited that a diversified office tenancy and a demand for flexible workspaces were indicated as one of the reasons that could strongly attest to such performance. While some businesses are deciding to offload their rent expenses by introducing online arrangements so work can be done without having to spend so much on brick and mortar walls, it is still a need for most to be headquartered in a tangible location. This in mind, here are some tricks that might help you take advantage of real estate as a source of additional cash.

1. Long term residential rentals

This should come first as it is the most obvious: People need a place to live in and for the most part, residential arrangements are often made with the long term in mind. That said, not every place will be a viable location. Try to ask yourself this: What are an area’s prospects? If it’s in an urban city near a business district or a city that’s primed to be one, chances are it MIGHT be a good idea to invest in that location as you’re sure that someone will be needing a home in those areas. Keep in mind that the location should be the main driver on whether or not a location is a good investment. Do your due diligence or have someone to help you to make sure that you’re in for a good deal.

2. Short term and vacation rentals

If you’re more into cashing in your income more quickly, then short term rentals might be for you. The main difference between the long term and short term rentals is that while long term agreements tend to provide stability, short term rentals tend to minimize risk by making sure that cash actually goes to the investor sooner than later. Such arrangements are actually gaining popularity with the usage of various apps like Airbnb. The magic of Airbnb is that it makes matching vacant properties to potential tenants easier and the business entirely smoother.

3. The Fix-and-Flip

Home renovation shows are still gaining popularity but what some people might not notice is the fact that there’s good money to be made in the business of a house makeover. While fixing a house might seem ‘easy’, the trouble is how to make money out of it as not every location is a flipper’s dream. Selecting a potential property to flip is the first and often the hardest part in this method. Typically, the first properties that you should scout are the run-down homes in the best neighborhoods. Keep in mind that your renovation costs must be less than your gains to make sure that you’re getting profits off your fix-and-flip project.

4. Commercial Real Estate

Businesses will always need spaces for office and retail. Tie that up with the government’s plans to create new metropolitan cities, it might be a good idea to start looking into investing in areas that will benefit from the government’s plans. Some areas that might strike your fancy include Bulacan, Pampanga, Cebu and Davao. You might also want to keep in mind some of the trends happening in the commercial real estate scene and develop arrangements that will allow for flexible workspaces to take advantage of the demand.

5. Short sales

Short sales happen when the owner of a property fails to make payments to a lender, usually a bank, but before a foreclosure. Usually, taking the foreclosure route is more expensive which is why it is taken as a last resort. From an investor’s point of view, short sales are attractive because properties are sold less than what is owed by the borrowers/appraised value of a property since the lenders, usually a bank, want to get rid of the property ASAP. These low cost properties tend to become attractive investments because they allow for instant profits when sold at higher prices.