Are you tired of watching your money sit in a savings account? If you’re looking for a way to make your money work for you, it might be time to get into real estate investing.
Purchasing real estate investment properties and filling them with tenants has proven to be a profitable strategy over the long term. Even if you have to take out a loan to cover the cost of the investment, you can usually rent the place out for more you pay for your monthly mortgage payments.
Once you’ve decided that you’re going to get into real estate investing, you’ll have to decide which kind of property to buy.
In the article below, you’ll find information on three different types of real estate investment properties. Read on to learn more about this lucrative investment opportunity.
Single-family Rental Property
If you want a simple, straightforward real estate investment experience, consider a single-family rental property. This type of rental property is usually a home or condo that you buy and then rent out to tenants.
One of the advantages of this approach is that you only have to worry about one tenant. This is different from a multi-family rental property, which requires you to rent out multiple units to multiple tenants. The more tenants you have, the more problems you may have to deal with.
Multi-family Rental Property
If you’re looking for an investment opportunity and you’re okay with managing multiple tenants, you may want to consider buying an apartment building or duplex.
These rental properties can be very lucrative because you’re able to collect rent from multiple sources each month.
You'll also have to deal with finding multiple tenants for your rental property each month. If you do buy property with the intent of renting out multiple units, you may want to hire a property management company to find and screen tenants for you
Vacation Rental Property
You may not want to have tenants in your property at all times. If that’s the case, you can purchase a residential property and rent it out to people on vacation.
To make a profit on this type of real estate investment, you’ll have to rent it out often enough to cover your mortgage costs and any upkeep costs.
Of course, your property may also appreciate in value. In that case, you can sell the property later and use the funds for other property investing opportunities.
Now You Know the Different Types of Real Estate Investing
No matter what type of rental property you choose to buy, it helps to hire a property management company. These companies can find tenants for your property, keep up with maintenance requests, and generally stay on top of things so you don’t have to worry.
Are you ready to start your real estate investing journey? If you need to hire a property management company, reach out to the property management experts at Terra Residential.