Different Rental Property Types
When you are considering real estate investments, you must first if you want to buy to become a landlord or if you want to buy and sell on a regular basis. If you are interested in property management, then you will then need to decide what types of properties you want to manage. People of all types need rental properties, so no matter what you choose, you should be able to make a nice profit. Just be sure you don't overextend yourself on maintenance or renovations, and you won't have anything to worry about.
The first type of housing is single-family homes. These are the houses you see in any neighborhood, meant to be home to only one household. There are several levels, however, from inexpensive or even Section 8 housing to executive homes meant for traveling or contract businesspersons. While you can make an excellent profit from single-family homes, you should understand that a bigger investment is often needed to provide houses that are acceptable for the renters you wish to attract. These are also harder to maintain, so be sure you have worked in repairs and maintenance to the budget and monthly rent payment. In the end, it's quite rewarding to work with several single-family homes, but you should be ready for the initial work.
Duplexes and triplexes are also popular choices, simply because they are so similar to single-family homes. These will house more than one family, but you can keep most of your maintenance to a minimum since you are only working with one building at a time. You will also only have one mortgage payment, while two or three rent payments are coming in. There is a much larger chance for profit with more families in your houses. Just remember to be diligent when choosing tenants so you can keep your costs as low as possible.
Finally, you can work with apartment or condominium complexes. When you own the entire building, you will only have one mortgage payment per month, but you will receive several rent payments to cover the costs. In these situations, you are much likely to make a larger profit, because the rent money you bring in will often be much higher than the outgoing expenses. It is not easy to maintain an apartment complex, so you should be prepared with a team of maintenance workers and a financial advisor to ensure you always get the most out of your investment.