6 ways to make money in real estate

Earning money through real estate is no longer just for millionaires. Whether you have €10,000 in savings or an ambitious project worth several hundred thousand euros, there are now solutions adapted to all profiles. Furnished rental, resale with added value, purchase in a new home or investment in an SCPI... each strategy has its advantages, its level of involvement and its potential for profitability. In this article, we explain to you in concrete terms How can real estate become a real source of income, and How to get off to a good start without making mistakes.

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1. Investing in long-term rentals

Long-term rentals remain one of the most reliable and accessible ways to make money with real estate today. Here's how this strategy works in practice, and why it continues to appeal to many investors.

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🔁 The principle: renting a property for the long term

Long-term renting consists of buying a property that you rent out with a standard lease of three years (or one year if you rent furnished). This model allows you to receive a regular monthly rent, and to repay your mortgage with the rents collected. Depending on your financial arrangements, you can even generate a monthly surplus, called positive cash flow, once all expenses have been deducted.

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💡 A long-term wealth strategy

This type of investment is particularly interesting if you have the objective of building wealth. You gradually repay your credit thanks to the tenant, while benefiting from the annual market valuation. On resale, the capital is often fully repaid, and the capital gain can be significant if the property is well located.

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🏙️ Where to invest in long-term rentals?

The secret to profitability is localization. You have to choose a city or a neighborhood where rental demand is strong. Well-served city centers, student areas, neighborhoods close to hospitals or employment areas are safe values. These areas guarantee a good turnover of tenants and reduce the risk of a rental vacancy.

Take the example of an apartment purchased 160,000€ in Rennes, rented 700€ per month. With a loan over 20 years at a rate of 3.2%, the monthly payments amount to around €900 (insurance included). It may be necessary to complete slightly at the beginning, but in 5 to 10 years, the project may become self-financed, or even profitable every month.

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⚖️ Renting empty or furnished: two different approaches

In an empty rental, you sign a lease for three years. It is the simplest solution, with less management, but also with often lower rents. In furnished rentals, you sign up for a renewable year, but you can ask for a higher rent. By choosing the LMNP status (Non-Professional Furnished Renter), you benefit from powerful tax advantages: you amortize the value of the property and greatly reduce your taxes.

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🛠 Delegate or manage yourself

If you do not want to manage the rental yourself, you can go through a real estate agency. Count about 3 to 6% of the annual rent for this service. It is a good compromise if you do not live near the property or if you are short on time. But be careful to choose a responsive and transparent manager.

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📈 Profitability and safety

The advantage of long-term rentals is its stability. You don't need to find a new tenant every month like in a short rental. The model is cheaper to manage, more predictable, and most importantly, it allows you to build a profitable project over time.

By choosing a good location, by precisely calculating your expenses and by optimizing taxation, you can hope a net profitability of 3 to 6% per year, with real estate assets valued year after year.

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2. Do short-term rentals (Airbnb, Booking, etc.)

More and more investors are turning to short-term rentals to boost their profitability. By offering their property for the night or for the week on platforms such as Airbnb or Booking, they can often double or even triple their rental income compared to traditional rentals.

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🎯 The principle: rent to travelers or professionals

Short-term rentals are based on simple operation. You provide a furnished apartment or studio, often for one or two nights, to tourists, business travelers, or people passing through. In Paris, Bordeaux, Marseille or Nice, demand is continuous, especially in city centers.

The tenant does not sign a long-term lease. He books online, pays in advance, and stays an average of a few days. This means that the property can generate several “full” rents over a month, especially if you reach a good occupancy rate.

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💶 Higher profitability than traditional rentals

This is the main advantage of this model. For an equivalent property, short-term rentals often allow you to obtain gross income 2 to 3 times higher for the empty rental. For example, a studio rented for €700 for a long term rental can generate between €1,500 and €2,000 gross per month on Airbnb with a good occupancy rate.

This profitability is particularly interesting if you have a loan to repay or if you are looking to generate positive cash flow in the first year.

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🧹 More demanding management

The other side of the coin is management. At each tenant rotation, you must ensure cleaning, key delivery, clean linen, and replies to messages. If you don't delegate, it quickly becomes a fulltime.

Fortunately, there are concierge services or specialized service providers who take care of all the logistics. Count approximately 20 to 25% commission on turnover for an all-inclusive service. This reduces your revenue, but simplifies management completely.

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📍 Tense areas and local regulations

Before you start, make sure that the Short-term rental is allowed in the city where you are investing. In Paris, Lyon or Bordeaux, you often have to apply for authorization, or even change the use of the property if it is not your main residence.

Some municipalities strongly limit the number of rental days (120 days per year maximum in Paris for a main residence). Others completely prohibit this activity in some areas.

It is therefore essential to Inquire at the town hall before buying. Renting illegally can result in hefty fines.

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📊 Concrete example of profitability

Let's take a T2 in Marseille purchased €150,000, expenses included. Tastefully furnished and highly rated on Airbnb, it can be rented for €80 per night, with an occupancy rate of 70%. This represents approximately €1,680 gross per month, or more than €20,000 per year.

By deducting expenses, management fees and taxes, it is possible to generate a positive net cash flow of €300 to €600 per month, depending on the setup. As long as you have properly calibrated the project from the start.

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3. Earn money by buying and selling (flipping)

Buying a property, renovating it, and reselling it at a higher price: it's a quick strategy to generate a significant profit in a single transaction. Flipping attracts those who want a quick return on investment, as long as you are well prepared.

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💼 The principle: create value to resell quickly

In the purchase and resale, the objective is not to rent the property, but to resell with added value. This most often involves renovation work, a optimization of the property Or a good negotiation when buying.

For example, an old apartment with a bad layout, or a property sold below the market because it was on sale for a long time, can be purchased for €150,000, renovated for €30,000, and sold for €230,000 in a tense area. If the project is well executed, the net profit after expenses and taxes can exceed €30,000.

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🧠 Buy well to resell better

La Key to success, it's the purchase. You have to find a property with high potential, at a price below the market. This requires responsiveness, a good knowledge of local prices, and sometimes off-market contacts.

High-leverage assets are often:

• Badly presented in the ad,
• To be completely renovated,
• Badly located in the building (ground floor, no elevator),
• Or sold quickly following an inheritance or divorce.

In this type of project, every euro saved on purchase increases your resale margin.

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🔨 Manage the work and the budget

Renovations are the most critical step. You have to be very rigorous on budget, deadlines, and quality. A poorly managed construction site can hamper profitability, or even cause you to lose money.

If you are not used to it, it is best to surround yourself with a contractor or architect. Count €1,000 to €1,500 per m² for a complete renovation in a big city.

The work must be aimed at valorize the property for the future buyer : new kitchen, modern bathroom, insulation, compliance with standards. It's not about having fun, but about meeting the expectations of the local market.

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📉 Anticipate taxation on capital gains

Unlike the main residence, a property sold shortly after purchase is subject to Real estate capital gain tax. If you carry out several transactions per year, you can even be requalified as a property dealer, with specific obligations.

The gross capital gain is equal to difference between the sale price and the purchase price + costs + justifiable work. It is taxed at 36.2% (19% tax + 17.2% social security contributions) if you are an individual.

It is therefore essential to provide for taxation right from the start, and to incorporate a sufficient margin for the project to remain profitable after taxes.

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🧮 Concrete example

An investor buys a T2 in Toulouse at €135,000. He incurs €25,000 in work, pays €10,000 in costs (notary, diagnostics, miscellaneous). He sold the property for €200,000 six months later.

The gross capital gain is €30,000. After taxes (around €10,000), he has left €20,000 net, in six months. This type of project can be very profitable if it is well controlled, but also includes more risks than traditional rentals.

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4. Investing via rock-paper (SCPI, listed real estate companies)

If you want to invest in real estate without buying a physical property, without managing a tenant, or going to the notary, SCPIs are an excellent alternative. This indirect real estate investment allows you to generate passive income, with a relatively accessible initial investment.

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🏢 The principle: invest in shares in real estate companies

An SCPI (Société Civile de Placement Immobilier) collects funds from investors, and uses them to buy professional properties (offices, shops, clinics, senior residences...). In return, each investor receives a share of the rents collected, in proportion to his investment.

It is a completely passive product. You don't have no management, no maintenance required. The SCPI manages acquisitions, leases, works, and the redistribution of rents.

This operation makes it an investment particularly suitable for people who do not want to take care of real estate, or who want to diversify their assets effortlessly.

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📈 A stable yield between 4 and 6% gross

The majority of SCPIs are now distributing a annual gross return between 4 and 6%, according to the management company and the type of property. This is more than Livret A (1.7% in August 2025) and more stable than the financial markets.

Some specialized SCPIs (health, logistics, Europe) even show higher returns, around 6.5% gross. But be careful: the higher the return, the greater the potential risk.

(Source: Avenue of Investors — SCPI 2025)

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💰 Anticipated accessibility and taxation

It is possible to invest in SCPI from 200 to 1,000€ according to the companies. This low entry ticket allows you to start small, or to test the product before investing more.

However, the rent paid is considered to be land revenue, and therefore taxed according to your marginal tax bracket, + 17.2% of social security contributions. If you are highly taxed, it is better to house your SCPIs in a life insurance to take advantage of lower taxation in the long term.

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🧱 No physical assets, but a solid asset

The advantage of SCPI is diversification. With just one share, you indirectly become the owner of a Hundreds of properties distributed in several geographical areas. It is a good way to smooth rental risks and take advantage of real estate dynamism without exposing yourself to a single tenant.

On the other hand, it should be understood that You don't own the walls, but shares. The value of these shares may change, and their resale is not always instantaneous. SCPIs should therefore be considered as an investment. in the medium or long term (at least 8 to 10 years).

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📍 Who is it suitable for?

SCPIs are perfect for:

• to people who don't want to manage real estate,
• to non-resident expatriates,
• for savers looking for regular and passive income,
• or for those who want to supplement their retirement with additional income.

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5. Buy new in off-plan to rent

Buying a new property means investing in a home that does not yet exist, but which will be delivered turnkey in the coming months. We then talk about buying In VEFA (Sale in Future Completion State). This strategy attracts many investors in 2025, thanks to its tax advantages, its guarantees, and its energy performance.

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🧱 The principle: buy on plan to rent upon delivery

In off-plan, you sign a contract with a developer who builds the home. You are starting to pay for the property in stages, as the work progresses. Once delivered, you can immediately rent it. The aim is to make the investment profitable from the first weeks after delivery.

Since the home is new, you more easily attract demanding tenants (active, families, seniors), and you avoid major renovation expenses for several years.

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💰 Significant fiscal and financial advantages

Buying in new condition allows you to benefit from reduced notary fees : around 2 to 3% of the price of the property against 7 to 8% in the old one. It is a direct saving, often several thousand euros.

Another advantage: some programs are eligible for the VAT reduced to 5.5% (instead of 20%) if the property is located in the ANRU or QPV zone. This often concerns projects located in neighborhoods undergoing reconversion. In Nantes, for example, a T2 sold for €190,000 including VAT can cost you less than €180,000 with reduced VAT, depending on the case.

In addition, if you use a real estate hunter like MeCaza, the support is Free in the new, because paid by the promoter. A real lever to be well supported, without hidden costs.

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🌿 More economical and more attractive housing

All new homes delivered since 2022 meet the standard RE2020, the new environmental regulations. This ensures a DPE A or B, reduced energy bills and a better quality of life for the tenant.

This is a strong commercial argument: a new apartment is generally rented faster and more expensive than an ancient and poorly insulated property. It is also more sustainable: no work required, no short-term energy renovation.

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📆 A project that requires foresight

The main disadvantage of VEFA is the delay. It is necessary often 12 to 24 months between the signature and the delivery of the goods. During this time, you are starting to repay the loan, but the property is not yet generating rent. Luckily, you only pay for intercalary interests, unlocked with each call for funds.

This waiting time can be used to refine your rental strategy, anticipate management, and finalize your banking procedures.

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📍 Concrete example

An investor buys a new studio in Montpellier for €155,000, delivered in 18 months. He plans to rent it €620 per month upon delivery. Thanks to reduced notary fees (around 4,500€) and no major work required, he can free up a net profitability around 4.5 to 5%, while valuing a quality asset over the long term.

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6. Optimize fiscally via dismemberment, SCI or land deficit

Sometimes, the real driver of profitability does not lie in the property itself... but in How you invest. By intelligently structuring your purchase via a SCI, a Dismemberment of property Or a land deficit, you can reduce your taxes, anticipate a transfer, or increase your net profitability without taking more risks.

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🧾 Create an SCI to invest with several people or to transfer

La SCI (Real Estate Civil Society) is a common tool for buying together, with others, or as a family. It allows you to own real estate in the form of shares. This is especially useful:

• to Investing with several people without joint ownership,
• to Pass on to your children via a donation of shares,
• to facilitate the management of rental assets.

In SCI, you can choose income tax (IR) or corporate tax (IS), depending on your strategy. This tax choice has consequences on your declarations, depreciation and capital gains. It is therefore important to be well advised before starting.

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Dismemberment of property: a powerful transmission tool

The dismemberment consists in separating bare ownership (the “shell” of the property) from usufruct (the right to use it or to collect rent). It is an assembly widely used for:

• Transmit a property to his children while keeping the income,
• or invest cheaply by buying only the bare property.

For example, buying bare ownership of a property at 60% of its value and recovering the usufruct after 15 or 20 years makes it possible to Building up assets without management, at a reduced price.

It is a wealth strategy, ideal for patient investors or parents who are preparing for their succession.

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🛠 The land deficit to reduce taxes

If you rent an empty rental property and you realize important work, you can declare a land deficit. This means that your expenses (work, loan interest, insurance, etc.) exceed your property income.

In this case, you can deduct up to €10,700 per year of your overall income, which directly reduces your income tax. The surplus can be carried over to the following years. This mechanism is powerful for taxed households, and allows you to renovate a property while paying less tax.

Attention: only certain types of work are eligible. Structural work or improvement works are often deductible, but not those related to construction or expansion.

📍 Example of concrete optimization

A couple creates a SCI to buy a building to renovate in Reims. They opt for taxation based on IS, which allows them to amortize the value of the property and reduce their taxable profit. At the same time, they commit 40,000€ of work in the first year and benefit from a significant land deficit. This way they save more than €5,000 in taxes from the first year, while valuing their property for resale.

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✅ Conclusion: Real estate, a powerful tool for earning money

Whether you choose to rent for the long term, to operate a property on Airbnb, to resell after renovation, to invest in rock-paper or in the new one, Real estate is still one of the best ways to make money sustainably. With a good project, you can generate passive income, build solid assets and even optimize your taxation.

Each strategy has its advantages, its constraints, and its subtleties. The important thing is to choose the one that fits your profile : available time, appetite for risk, borrowing capacity, taxation... There is no single good method, but Yours, provided it is carried out rigorously.

And if you don't know where to start, you can always get help. Chez MeCaza, our real estate hunters help you find the right property, in the right city, at the right price, whether for a rental project, a new home purchase or a heritage investment. You save time, you secure your decisions, and you move forward with an expert at your side.

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