5 Types of Real Estate Property Investment

by Robin Anderson Real Estate 04/26/2020

Image by Steve Buissinne from Pixabay

Real estate investing is a powerful way to build wealth, as investors can take advantage of rent payments, appreciation, tax deductions and leverage. Additionally, there are lots of properties to invest in. If you’re starting to explore real estate as an investment opportunity, here are five types of properties and why you might invest in each.

Single-Family Houses: Starter Investments

Many individuals first get into real estate investing with single-family homes. There are many of these for sale, and they tend to cost less than the other property types mentioned here. Whether you want to flip properties or rent them out, a single-family home lets you get into real estate at an affordable price and you can learn a lot from owning just one house.

Small Multi-Family Houses: Greater Cash Flow

Small multi-family houses are a natural step after owning a single-family home, for multi-family properties offer better cash flow while still remaining manageable. Many landlords who invest in small multi-family buildings that have two to five units manage these properties themselves (although you can always outsource to a property management company as well).

Apartment Complexes: Significant Income Potential

If you have the necessary financial resources, apartment complexes offer even greater income potential than small multi-family homes. The more units a complex has, the more people pay rent and the greater the potential revenue. Of course, this increased potential comes with additional challenges. Expect to maintain amenities and answer regular service calls if you get a sizeable apartment complex.

Vacation Homes: Dual-Purpose Income Properties

With the advent of peer-to-peer online platforms, vacation homes have become an increasingly popular type of investment property. These include lake houses, ski houses and ranches, as well as apartments and townhomes in cities that have regular short-term visitors. In short, anywhere there’s a campground or hotel, a vacation home might be viable.

Vacation homes are unique in that they focus on short-term rentals rather than long-term leases. While this means the place must be cleaned between each reservation, it also gives you the flexibility to block off times when friends or family want to use the place.

Commercial Properties: Sizeable Investment Potential

An alternative to residential properties, you can also invest in commercial properties. You may have to be an accredited investor (earn $250,000 annually or have a $1 million net worth) to get into commercial real estate. If you’re able to, though, these properties offer diversity and significant long-term potential.

About the Author
Author

Robin Anderson Real Estate

“My Passion is people and relationships and I promise to provide my clients with exceptional service tailored to their individual needs.” -Robin Anderson 

Georgia native, Robin Anderson brings her passion for people and her love of homes to work for her clients. She and her husband, Andy, have been married for over 30 years and have two adult children, Ellen and Drew. They currently live in Fulton County, but Robin has lived and invested in properties throughout metro Atlanta as well as helped clients buy and sell. She has been integral to many real estate endeavors including designing and building several custom homes, remodeling homes, subdividing land, managing rental properties, and buying and selling properties. She spent her first 3 years in real estate working with a new home builder, and she has spent the last 6 years working with buyers and sellers in her own community. Robin is highly motivated but sensitive to the fact that buying and selling homes can be an emotional experience, so she makes it a priority to keep clients closely informed throughout the process and strives to produce quick results. She appreciates the opportunity to help her clients navigate the real estate process, and she aspires to deliver quality customer service that is both informative and positive. She is driven to provide outstanding service for her clients and she is focused on building successful and lasting relationships with her clients. This personalized service earns her enthusiastic referrals from clients she is pleased to call friends.Edit

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