Many people own the homes they live in, but 48 million people live in rental properties. As a result, rental properties are in high demand.
Investing in properties is a great way to earn a living, and many investment property owners find that diversifying is one of the best strategies. Diversifying means buying different types of investment properties.
So, what are the types you can buy? Keep reading this guide if you're looking for ways to expand your business as we discuss five great types of properties to choose from in Houston, TX.
1. Single-Family Homes
One type of property you can invest in is single-family homes. You can look at real estate in Houston, TX, to see your options, and you'll likely find many homes for sale.
Buying and renting single-family homes is a great investment, as some people don't want to rent apartments. So instead, they look for houses to rent.
If you decide to allow pets, you might open your opportunities even further.
2. Multi-Family Properties
Next, you can invest in multi-family properties. A multi-family property might have two rental units in one building. However, some multi-family units have dozens of apartments in one building.
Multi-family properties cost more than single-family homes, but you'll acquire more units to rent.
If you're looking for a passive way to invest in real estate, you might consider investing in REITs. A REIT is a company that specializes in real estate investing.
Many people hesitate to invest in real estate, assuming they need more money to do it.
However, you don't need as much as you think, especially if you choose a REIT. You can learn more about the money needed for investing in real estate if you're interested in learning.
4. Commercial Properties
Some real estate investors avoid purchasing commercial properties, assuming they're more challenging to manage. However, this isn't necessarily true.
The benefit of purchasing commercial properties is they offer long-term leases. When you rent to a business, you can require a five-year lease.
However, you typically require one-year leases when renting apartments to individuals. Commercial properties might be harder to rent, but you'll be set once you find a tenant.
5. House Flips
Finally, many people choose house flips as investment properties. A house flip involves buying homes that need work. Then, when you buy these houses, you invest money to update them.
After updating them, their values tend to significantly increase. As a result, you can sell them for a profit.
The benefit of house flips is they offer a way to make money quickly instead of relying on long-term income streams through rental units.
Invest in Various Types of Investment Properties
If you want to expand your business, you might want to invest in various types of investment properties. By doing this, you'll diversify your portfolio and make more money.
Contact us if you currently own investment properties and need help with your management duties. We offer full-service property management services and can help your business succeed.