Investing in real estate can be a lucrative endeavor. If you want to try it but aren’t sure how to get started, don’t worry. You’ve picked up the right article. Here, we’ll discuss the five best property types you should consider when searching for a good investment property.
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Student Housing
Student housing is a great investment because it has a high return on investment. The reason for this is that students are usually willing to pay more money than other tenants. It is because they are not in the area long-term and want to ensure that they have a place to stay while in school. Student housing can be purchased in many ways, including apartment buildings, duplexes, or single-family homes. You can also buy condos or townhouses if you want your student housing to be closer to campus. Student housing is also an excellent choice for investors who want to diversify their portfolios. This industry has been one of the top-performing industries over the last decade and shows no signs of slowing down anytime soon.
Condos and Apartments
Condos and apartments are one of the best types of property to invest in. They can be low maintenance, have a steady cash flow, and have the potential for high returns. The following are some reasons why condos are a good investment:
Condos are Low Maintenance
Condos don’t need as much maintenance as single-family homes. Condos generally have a common area where the association or condo management company takes care of landscaping. The other units also share cleaning duties for common areas such as hallways and laundry rooms. It means you won’t need to hire someone specialized in high-rise buildings to do all your maintenance work, saving you time and money.
Condos Have a Steady Cash Flow
When you buy a condo, your tenants are responsible for paying their monthly rent directly to you instead of having it deducted from their paycheck by their employer. It means there is no chance that your tenants will fall behind on their rent payments because they lost their jobs or had another financial hardship. You will always have income coming in every month because they have nowhere else to turn but you if they don’t have enough money in their bank accounts to pay their rent on time.
Multi-Family Properties
Multi-family properties are great investments because they can produce a high return on your investment. For example, if you have a good credit score and a large down payment, you can purchase an apartment building or duplex that has five units or more.
When buying a multi-family property, make sure you get an appraisal before going through with the purchase. It is because some sellers don’t know what their property is worth and will overprice it so they can sell it quickly.
Once you have purchased the property, you will need to find tenants who can afford to pay rent on time every month. You also need to make sure that there are enough vacancies so that everyone can move in and out of their apartments without any problems.
Fix and Flips
If you are looking for investor properties for sale, then fix and flips are the highest-returning type of properties to invest in. It is because they require less work, have a shorter time frame, and can be sold for a higher profit. In addition, fixes and flips are homes that need repairs or renovations before they can be put on the market.
Fix and flips are easy to manage, so you don’t have to spend much time managing your fix and flip property. Instead, you can hire contractors who do all the work while you care for other things like finding buyers and marketing your property. Fix, and flips are also quick to sell once they are renovated because there is always a demand for them in most markets.
Airbnb Properties
If you own a property that has spare rooms or an extra bathroom, then Airbnb is a great way to make some extra cash each month. You can set up an Airbnb account for free and share your space with other people who are looking for somewhere to stay while they’re on vacation or visiting family members. The best part about Airbnb is that it doesn’t cost much money upfront, and there aren’t any ongoing maintenance costs involved either.
The Bottom Line
Property investment may be a hard way to make money. But the results can be very rewarding for those willing to work hard. Because of that, there’s much room for first-time and experienced investors. So if you’re looking to start your real estate investment career, it’s more than possible. But to get started, you’ll need to know what to look for and which investments will give you the greatest return on your money.
