If managed properly and marketed right, a real estate rental property can produce a very good income stream and a high return of investment. Not only can you earn from rental payments, but the value of the property, more often than not, increases in time especially if well-maintained.

However, acquiring real estate costs a lot of money. This is why aspiring landlords have to find a lot of ways to build enough capitalization. With the right attitude, perseverance, and willingness to put in the work, it is not impossible to achieve the real estate dream of owning a rental property.

Here are a few things you can do to save up for your first property.

Live within a certain budget

To keep up with your finances, you need to have a certain level of control and discipline when it comes to your money. You have to match your lifestyle with the amount of money you earn and the amount you want to save. Live frugally by following a budget list.

It’s good to be aware of the regular purchases you make every month so that you know how much of your income is completely off-limits for non-necessities.

If you keep track of your expenses, it would be easier for you to determine how much you spend on non-essentials so that you can avoid overspending on them and set aside the money for the long-term goal you have in mind.

Open a high-yield savings account

Saving money doesn’t mean it should completely remain idle without any growth opportunities. Automating your savings to a high-yield savings account that can increase its value passively. Search and compare different accounts that offer competitive interest rates.

You can also invest in different low-risk short-term investments that can offer a yield higher interest than what time deposits can offer.

Sell your old stuff

Unless you’re a hardcore minimalist, you can’t deny that you have possessions lying around that you no longer use, but can be of value to others. Instead of letting those things take up space, might as well earn quick cash from them. Conduct yard sales or sell them online.

Get a side gig

There are a lot of side hustles you can earn money from if you are willing to put in the work. You can do some online writing, dog walking, or drive for Uber. You can even go ahead and find a gig as a rental agent. Since you want to become a landlord in the future, might as well find extra work within the industry to expand your knowledge in the business.

Learn how you can become a rental agent in your area, then earn the trust of landlords to give you a chance to find tenants for their vacant units. You can utilize platforms like Padleads to publish listings and syndicate them to popular rental websites. You’ll be closing deals in no time. Not only will you earn extra cash to save up for your first property, but you also gain a lot of first-hand experience and knowledge on what it takes to become a real estate investor.