Every person will be drawn towards different kinds of investments. The amount of time and money you are able to put into a property will help you decide how to invest. Below, we take a look at some of the most common real estate niches, so you can choose the one that is right for you!
Single-family houses are the most common type of real estate property. Typically single-family homes are easily maintained and attract long-term renters as opposed to those rental apartments. Single-family homes are more easily resold and can be occupied by the owner down the road. The downside is that if your tenant moves out, your income from the property will be zero and you will have to cover the utility costs your tenant was previously paying.
Multi-family properties might require a little more work or a larger investment, but the rewards can be huge. Having multiple tenants is great as it is very unlikely they will all decide to move out at the same time, meaning you will always have income coming in from the property. However, more tenants mean more repairs, more complaints, and more time collecting rent. If you get the right tenants in place, these factors shouldn’t be an issue.
Anything over 4 units is considered a commercial property. An apartment building can require a good amount of maintenance and work to keep your tenants happy. Many landlords choose to hire a property management company to handle all of the day to day issues. This should be factored in before you decide to buy.
If you house is in a vacation destination, you are in luck! The vacation industry is huge and more and more people are choosing to rent a house when they travel as opposed to staying in a boring and bland hotel. Many people make a living simply by being hospitable. In many cases, an owner can make in a week what they would make in a month renting to a traditional tenant.
Owning land is the easiest way to get into real estate investment. There is little to no maintenance. No bad tenants or repairs required, and you can get started with very little money comparatively. For a few thousand dollars you can find a nice lot, hold it or build, and turn that piece of land into cold hard cash.