You may think that getting into real estate investing is a simple matter—buy a house, fix it up, rent it out—but there’s a lot more to know before you can maximize profits. The first thing every investor should learn is the list of options they have! From raw land to commercial real estate, read on to find out what the different types of investment properties are.
Residential Real Estate
This is probably what you think of when you picture a real estate investment, as this type of property refers to anywhere someone will live. There are a few specific types of investments within the blanket of “residential real estate.”
- A long-term rental property is real estate you intend to rent out to tenants.
- A vacation rental is real estate you intend to rent out to visitors who stay for short periods.
- Flipping a home is the practice of buying a run-down home for cheap, repairing and upgrading it, and reselling it for a profit.
- Accessory dwelling units are living spaces on your property, like a basement or shed that you rent out to a tenant.
If you’re looking for residential real estate investment properties in Atlanta, don’t hesitate to reach out to us!
Commercial Real Estate
Most nonresidential real estate is commercial real estate—things like offices, retail stores, and warehouses. You profit by either renting out the property or selling it after the value appreciates. While commercial real estate is more time-consuming and expensive to manage, it also has the potential for higher returns than residential real estate.
Land is real estate, too! Raw land is a property devoid of anything other than land—if it has crops or paths, it’s not raw land. This property is usually easy to acquire and has a lower cost than commercial or residential real estate, but you may not make money quickly. That said, raw land doesn’t require much time or money to maintain.
Now that you know what the different types of investment properties are, figure out which style of investing appeals most to you!