Are you interested in buying an investment property, but don’t know where to start?
If you answered yes, then you’ve come to the right place. Around 10.6 million Americans earn some income from property investments and you can, too.
There are many types of investment property that you can purchase. Knowing your options will make the researching and buying process more manageable.
The information in this guide will help you reach your personal and business goals as the answer to the “What is the best type of investment property?” is subjective.
We are going to dive into the best types of investment properties so you have a better understanding and can make an informed decision.
Residential vs Commercial
The first decision you have to make is between residential investment properties and commercial properties.
As an individual, typically a residential property is going to be easier to obtain. Depending on location and market demand, you can invest in short-term or long-term rentals.
Single-family homes, condominiums, townhouses, and multi-unit properties are all considered residential.
Office buildings, industrial and warehousing facilities, retail space, and land are going to be your commercial investment property options.
There are pros and cons to each type. You’ll have to decide which type you want to manage. You’ll also need to consider your financial situation, location, and the amount of time you have to dedicate to the properties.
For those looking to increase their monthly income, rentals are a great investment property option. Short-term and long-term rentals give you some degree of passive income.
Long-term typically refers to leases that are 12 months or longer. If you find property in a neighborhood or suburban area, you may want to consider making the property a long-term rental.
However, if you have a property in a town or city where lots of people vacation, a short-term rental may be a better option. Vacationers are constantly looking for property to rent and can be profitable.
When it comes time to purchase an investment property, you’ll likely need a loan. Low Doc Lenders can get you set up in no time. Before you know it, you’ll have the property in your name.
There are a lot of investors out there that aren’t interested in being a landlord and don’t want the responsibility of owning a property for a long time.
House-flipping is a real estate investment option that can also be a good way to make a profit. It requires extra work as you’ll need to renovate the home yourself or hire someone to do the work.
Once the renovation project is over, you’ll sell the property for more than you bought it for.
Investment Property Guide
Buying an investment property is a great way to build your wealth and set yourself up for success in the future. Take your time finding the right property, and don’t be afraid to take risks.
For more investment property advice and financial tips, check out our blog!