Robert Kiyosaki once said that a house is not a good investment since it drains money. In reality, it depends on how you plan to use it.

Here are six ways to turn a property you just purchased into a money-making machine for years:

1. Fix and Flip

One of the most popular ways you can make money from a new property is by fixing and flipping it. It particularly works in distressed properties located in a strategic location and with excellent bones (or foundations).

In fixing and flipping, you buy a house hopefully at a discounted or low price, then repair and renovate it (depending on your market), and then sell the house again for a higher price.

2. Rehab, Rent Out and Repeat

Another strategy is to buy a distressed property, fix it up and then rent it out at market price for an immediate profit. In this case, you’re not looking to resell the property but instead use it as a steady source of income. However, you can sell off the house after a few years to realize your profit earlier.

Since this strategy requires more time, it’s best done in areas where the demand for rental properties is high. It is also ideal for those who are looking at having a stable cash flow or recurring income they can depend on every month.

3. Consider BRRR

The BRRR method for real estate investing is like strategy number two, except for one thing: refinance.

First, you buy a property and then refurbish it before you rent it out. Once someone is living in it, you can then refinance it to get a conventional mortgage.

This setup is beneficial in many ways. One, you can take advantage of a much lower interest rate and a favorable payment term. Moreover, lenders are more likely to approve your loan when a tenant is occupying it (it shows you can afford the property), and lastly, you will enjoy a steady cash flow for as long as you like.

4. Refinance Its Equity

To make money without doing anything, this strategy is for you. All you need to do is refinance the equity of your newly bought property with a conventional mortgage.

You can buy a property with a high market value. Although you will spend a lot upfront, you will also build equity fast. After a few years, you can opt for cash-out refinancing, where you get lump-sum cash from the lender in exchange for your equity.

You can then use the money however you like while at the same time you will have a new home loan that hopefully has a lower interest rate and, therefore, more affordable repayment per month.

5. Rent by Room

This strategy is often not thought of as a way to make money, since multiple tenants can present multiple problems. For starters, you’ll likely deal with noise complaints. Then, you may have to spend more money with upkeep, including heating expenses. But if you plan well, you can maximize your property’s potential to earn extra income.

Buy a cheap house in an area with good infrastructure and capacity for growth. To make a bigger profit, look for a property in a developing community or an up-and-coming neighborhood with lots of commercial activities. Pick a home that has adequate room for common spaces, from the living room to the kitchen. And establish a clear set of rules for multiple tenants to follow.

Make your home as appealing as possible for different tenants, so you don’t have to worry about high turnover rate. High turnover rate means the inconvenience of relisting your rooms, which affects the reliability of your recurring income.

6. Convert It into an Airbnb

Finally, the last strategy you can use to maximize your newly bought property’s earning potential is by converting it into an Airbnb. The process is actually quite simple:

You buy a house with a sizable space for short-term guests. You then convert them into airy rooms where people will be entertained and accommodated. Then, advertise your property on Airbnb.

You can also try providing breakfast and other snacks for guests, so you will have an extra perk of providing a more personalized experience.

Once people start booking rooms on your property, all you need to do is simply schedule regular deep cleans of the house, keep it stocked with fresh linens and toiletries, and buy easy-to-clean furniture that can stand up to frequent use.

If you already own a house or property, there are lots of ways for you to maximize its earning potential. However, before you decide on which one to choose, consider your current situation and financial capability first so as not to overextend yourself in the process.