Investing in property is a tricky business, especially if you don’t know what you’re getting into. In order to allocate your money and get the most out of your investment, you need to work with the right property for you. This guide will review the different types of rental properties to invest in.
Single-family units are homes that are designed to have only one owner. They must have at least one wall and roofing unattached to another home or semi-detached. Renters of a single-family home are usually looking to find a place where they can move their family and children. In order to get the most out of the property, you’ll want to invest in a home that is surrounded by a family-friendly area. This includes thinking about access to schools, hospitals, grocery stores, and family-friendly activities and considering the overall crime rate of the area.
With a single-family unit, you’re more likely to get consistent income, as these types of renters are the most likely to renew their lease. But be wary, as relying on one single-family home means that a large portion of your income may disappear if your tenants decide to move.
Multi-family properties contain more than one unit and can attract a variety of tenants. When investing, you need to think about what your end goal is and whom you’re trying to attract. If you’re trying to attract families, you’ll have to take the same things into consideration that you would in a single-family unit. If you’re trying to attract younger residents, you’ll have to think about how close your property is to schools and young adult activities.
Commercial units can be the trickiest to invest in. This is because office spaces, warehouses, and stores are the most susceptible to trends and the comings and goings of people. For example, imagine you own property with a tenant who runs a trendy clothes shop. What will happen when clothing trends change and they end up losing a lot of business? While commercial units may have the biggest chance of making you a lot of money, start-up businesses are fickle, and not everyone is willing to stick their neck out for this type of investment.
Which One Is Right for You?
In order to decide what is right for you, you once again need to keep in mind what your ultimate goals are. Are you trying to make a lot of money at once, or are you just trying to make some extra income? What risks are you willing to put up with? Each type of property comes with its own pros and cons, and all have the potential to be lucrative. You just have to know what you want and make an action plan to get it.
Now that you know about the different types of rental properties to invest in, you’re one step closer to expanding your investment portfolio. But if you’re struggling with the hefty responsibilities of landlords, we’re here for you! Excalibur Homes is a full-service property management company that works with single-family units and employs a staff that is dedicated to making your life as a property owner easier, no matter what you need help with!