When beginning your investment search the key is to keep an open mind with the opportunities of the overall anticipated goal of rental income and profits. Before purchasing investment properties, you should determine your overall investment strategy. What is your main goal? Are you looking to flip and have a project to work on? Are you looking for a turnkey? It is important to find an agent who can help and specializes in investment properties to make this process simple and rewarding. As you indulge in this market keep these options in the back of your head.
To buy and hold in today’s market is an opportunity in itself to provide rental opportunities. This is becoming more and more common within the Short Term Rental industry. Although you may consider taking a title as landlord, you can also work with companies to help manage property needs. When this is executed correctly, the long-term investment will bring passive income through monthly rent. Ensure you’re doing research on HOA regulations and the township to properly understand zoning. According to Bigger Pockets, “you should know more than the property’s market value when you buy an investment property. Holding on to a property to earn rental income requires extensive research into the area’s rental market, including the area’s safety and school ratings.” Your real estate Agent is able to guide you to properties that will benefit your ideal investment.
2. Condominiums According to an article in Bigger Pockets, “ Many real estate investors are opting for condominiums in fast-growing real estate markets right now. Why? They are affordable, low maintenance, and might provide nice perks like shared pools and fitness centers.” A condo has the featured benefits of both a house and an apartment, which makes it a big advantage when purchasing. Condos have much lower operation costs, providing a variety of locations, and sometimes extra amenities that can provide value to your investment. Waterfront, hot tubs, and pools are often a persuasive decision when choosing the right rental. Keep this in your head when deciding what type of property you’d like to invest in.
3. Commercial Space Much like condominiums, apartments, and homes you are able to rent out spaces such as warehouses, offices, retail stores, and kitchens. Although the options are endless these are just a few of the most common. Commercial space allows a professional relationship with a business to reside in for a properly agreed on term. This allows the property to not only increase in value, but bring more profit into your pocket. According to Rocket Mortgage, “Commercial real estate is known to yield higher returns than residential real estate. If you can afford to manage a commercial space, it can prove lucrative over time, depending on your area. Upkeep may not be as risky as residential investments. Since you’ll likely be renting commercial spaces to businesses, there tends to be more professional relationships between tenant and owner.”