There’s no question that real estate is the best way to wealth that is available to a wide number of individuals. However, not every property is going to bring the returns that you want and that’s where learning smart property investing comes into play. There are many options out there, and understanding the options will help you figure out which types of property you are most comfortable with investing in.
2-Bedroom Family Homes
Families are getting smaller and smaller in many places, with many couples even choosing not to have children. This has made smaller family homes more popular than ever. There is an increasing demand for smaller family homes and this can be a relatively inexpensive investment in a group of properties that are in higher demand than ever.
Larger Single Family Homes
Single-family homes can be 2 or 3 bedrooms or they can be 4 or 5 or even more in some rare cases. While these might not be the first thing you think of when it comes to property investing, buying a single-family home can often allow you to get a large series of great tax breaks or special loan conditions. Move into the house, improve it, then find another, move into the new one and rent the old. This is a great way to build equity while picking up properties.
Apartments can seem appealing as an investment property option, but it is often a very competitive market for them. If you’re relatively new then you may want to consider another property type, or at the very least look smaller complexes to get used to what you need to do to effectively run one before going for an especially large unit where the responsibilities and headaches will be multiplied.
Duplexes & Tri-Plexes
This is a great way to get into property investing as you can own one of the living areas and rent the others to help pay for it or rent them all out as a precursor to see if you could hack it buying apartments or other similar properties. Many people have found success living in one half of a duplex and renting the other one as an Air B&B property.