Realtor® & Accredited Home Stager
Judy B. Leerer, Realtor® & Accredited Home StagerPhone: (508) 259-1366
Email: [email protected]

5 Types of Real Estate Property Investment

by Judy B. Leerer 05/12/2021

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

Judy B. Leerer

EXPERIENCE - KNOWLEDGE - INTEGRITY

I provide you with the attention, honesty, and service you deserve, and a genuine concern for your needs, throughout the entire real estate process.

Real estate is not my job; it has been my career since 1984.  

Whether working with buyers or sellers, my goal is to make the transaction as smooth and stress free for my clients as possible. I understand that knowledge is power and to that point, I have constantly furthered my real estate knowledge by pursing and obtaining "advanced degrees” such as GRI- Graduate of the Real Estate Institute; CRS- Certified Residential Specialist- a designation held by only 4% of all Realtors®; ABR, Accredited Buyer Representative; SRES- Seniors Real Estate Specialist; and ASP- Accredited Staging Professional.