If you’re looking for a flexible source of income after graduation and have a viable property or enough saved up to make an investment, you may be thinking about starting a real estate business, or simply becoming a landlord on the side to boost your monthly income. This may sound straightforward, but there are plenty of things to consider before you make a start. This article contains a few handy tips to help you out in this new but potentially profitable venture into adulthood.

Look into Tax and Insurance

There’s quite a bit of red tape involved in real estate and property rental transactions. For example, if you’re thinking about being a landlord, you need the right insurance in place to ensure that your property and its residents are fully covered at all times, and you’ll also need to pay income tax. If you’re renovating and selling on a property that you’ve inherited, you’ll probably need to pay capital gains tax. However, some paperwork is immediately beneficial, too. 

For example, using your 1040A, you could apply for a student loan interest deduction that will enable you positively impact your taxes and to subtract up to $2,500 of the interest from your student loan from the taxable income you make from your real estate business. You need to have attended a qualifying college or university and your loan must have been disbursed within 90 days before the relevant academic period or after 90 days of it finishing. You won’t qualify if your modified adjusted gross income is over $85,000, but you can get a partial deduction if it’s between $70,000 and $85,000 and a full deduction if it’s less than $70,000.

Get the Word Out

You need to let the right people know about your business or the property that you have available. Get yourself listed on top real estate sites and ensure that everything you share about your venture online is properly SEO (search engine optimization) optimized to attract visitors. The inclusion of high-quality images and clear, attractive descriptions of your properties will help you to gain popularity.

Seek Support

Going into real estate is a big undertaking for a recent graduate. Don’t let yourself get too overwhelmed, if you run into any barriers or you find yourself feeling confused, seek advice and guidance. You may have contacts on social media or through your network of family and friends who may be able to give you a hand and explain things to you. The more knowledge you gain, the less likely you’ll be to fail.

Stay Secure

It’s highly recommended to look into a secondary source of income while you build your real estate business or get into the flow of being a landlord. After all, many new ventures fail or make a loss in their first few years, and relying entirely on this insecure means of money-making can have disastrous results. It may be best to get a salaried job and start your project on the side. You can gradually transfer focus as your work in property becomes more successful.