Buy and hold
The buy and hold strategy is one of the easiest in real estate investment, how you do this is buy a rental property under market value and hold it for the long term. You do this to eventually achieve a mortgage-free property, this works by having tenants gradually pay off the mortgage so that eventually the rental income goes directly to you and you make more profit. However, you must ensure that the property makes enough income to cover its own expenses.
Flipping houses is a way to quickly make money by increasing the value of a property. In order to flip a house, you buy a property in a bad state for a very low price, renovate the property as quickly as possible at the lowest price, then you proceed to quickly sell it for a profit. Although this method can be extremely profitable depending on how much you invest in renovations it is also risky in regards to the fact that there is no guarantee that the house will sell.
Rent to own is a strategy that has been regaining popularity in Ontario. This strategy entails purchasing a property, but instead of looking for potential renters you look for a new owner. This new owner is usually someone who would like to own a home but can’t because they cannot make a down payment or they have bad credit. The tenant will pay rent with an additional fee that goes towards a down payment that is cashed in on after renting for a pre-determined amount of time.