Property investment is one of the most profitable types of investment there is. Having the right investment property can help you in ways you've never imagined before.
However, it's hard to know where to start or what the right type of investment property is. That's why you've come across this article.
By the time you're done, you'll know exactly where to start with selecting the perfect investment property.
Investment Property Types
There are many different types of investment property. Each has their own pros and cons, which we will run through briefly.
Vacation rentals are commonly known as short-term rentals. They're a great way to generate a significant amount of income in a short amount of time, as you can charge higher rates for this type of rental. However, you need to clean it thoroughly after each stay, and costs to maintain the property are more expensive as the work to upkeep it is more intense.
Long-term rentals are the most common way to invest in rental property. This provides a steady amount of passive income, and your income is more stable than a short-term rentals.
With a long-term rental, you need to make sure your clients are reliable. You'll also need to reliably fix repairs, to ensure that you maintain a good relationship with tenants.
Lastly, fix-and-flips are a good way to break out into the property investment market. You can get a fixer-upper in an area you may not have been able to otherwise afford, and you can make a large amount of money at once. However, flipping a fixer-upper is a huge responsibility and requires time and effort you may not have.
Best Investment Property
Now that you've heard about the investment types, it's time to look through the different houses you can use as investment property.
Single-family homes are the most common residential property outside of big cities. These come with a yard and their own driveway, appealing to all types of tenants. In suburban areas, these are one of the cheaper types of rental housing to invest in.
Condos are the most typical non-apartment property found in cities. This is a type of real estate divided into several sections over a body of land, often sharing parks and swimming pools.
Townhouses are known as terraced housing. These are narrow in size, but have multiple stories to make a large living space. These are typically available in cities and are more expensive.
Lastly, luxury homes are found in desirable areas such as close to the beach. The different types of luxuries in each home vary, but one thing stays the same - they are expensive.
In the end, the best investment property depends on the area you live in. So long as you avoid common real estate investing mistakes, you can't go wrong.
Contact Us Today
Now that you've learned all about selecting the right investment property, you're ready to start investing in property. But before you click out of this article, there are a couple of questions you need to ask yourself.
Is there anything else that you need to know about what it takes to invest in rental property? Are you going to want help managing your rental property?
If so, then you need to contact us here. We'll help you with any questions or concerns you might have about your new investment.