Real estate is one of the best possible investments that you can make if you are looking to grow your wealth. Real estate offers the rare opportunity to leverage debt to your advantage, own an appreciating asset, and to create a monthly positive cashflow, making real estate one of the smartest investments for anyone. But there are many different types of real estate available, and not each of them is as lucrative as others. Here are the three best kinds of property that you should invest in.
The first type of property that you should invest in as a real estate investor is multi-family properties. Multi-family properties are the bread and butter of real estate investing. These properties are great because you can increase your rental income, as well as decrease vacancies by having multiple units in one property that can be producing revenue. If you are a first-time home buyer, you can use the house hacking method to make multi-family properties work as an investment and your primary residence. Multi-family properties are a great place to start if you are new to real estate investing.
Another great type of property for you to include in your real estate portfolio is condos. Condos, or condominiums, are great because they are typically less expensive than homes or other standalone properties, making them a good place to start if you are new and don’t have a ton of capital to start with. Condos have the benefit of being managed by a homeowner’s association. While this comes with HOA fees that you will have to pay, this fee often covers things like utilities, pool access, gym access, and access to repairs, which can replace the need for a property manager to handle your properties.
The final type of property that can be a great addition to your real estate portfolio is commercial property. Commercial property, unlike residential property, will be leased to businesses. Whether you are looking at office space, retail space, or both, these spaces often have the potential for massive profits, but also come with some more competition and some higher prices. If you are looking to diversify your portfolio of residential real estate, however, commercial property is a great way to go.
Investing in real estate has the potential to change your life. But only if you know the right kinds of property to focus on. Start with these three types of property for your real estate investing journey.
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