Successful investors have mastered their methods of finding a passive income in the intricate world of investing, especially in the competitive world of the real estate industry. If you’re thinking of investing this year, let’s dig into the core of knowing how to find good investment properties.
Find Good Investment Properties
So how do you find good investment properties? The key to finding good investment properties is to have several available options around you, so you can choose which one best suits you and depending on your preferences, target the strategies and goals you’re setting.
We will break into details about investment properties to give you a narrower and a specific factor to give you the best options you could have.
Here are ways to find good investment properties to tick off that goal.
3 Types of Investment Properties to Choose
- Residential Investment Properties – Rental homes are a common and usual method for investing. When you choose this type of investment, you could rent it out to tenants and can collect the monthly rental. Below are some of the residential investment properties that you would consider investing in.
- Single-Family Homes – When hearing about single-family homes it’s a maintained structure and independent that sits on their land without shared walls and shared utilities. It is uniquely designed as a single dwelling unit. The single-family homes also are the ones you usually see when browsing the market for real estate listings.
- Condominium – If you’re in an urbanized city and you’re planning to invest, then a condominium unit is a great start to kick. Condominiums are also a great way to choose this type of residential investment property because it generally costs less, can be a passive investment, and attracts high demand.
Some of the largest cities to invest in condominiums in the state of California you might like to consider are as follows:
- San Francisco, CA
- Los Angeles, CA
- Long Beach, CA
- Oakland, CA
- Sacramento CA
You can find affordable condominiums that earn a high return on investment.
Apartments – There are several pros when investing in apartment buildings. You can have recurring rental income, which creates more opportunities as another source of income and property appreciation.
|
Townhomes – Although townhomes are single-family homes, they’re connected to neighbors by at least one wall. With townhomes, maintenance may be easier, and some of the townhouses are part of homeowner associations. On top of the maintenance benefits, you could always earn an HOA fee in the rent to become a passive income. But before you plan to invest in townhomes, be sure to check the guidelines first if your townhome is part of the HOA.
One of the advantages of townhomes is that they are usually located near a downtown area, which is favorable because it would be easy for tenants to commute for work or entertainment. So considering that people would love everything around them accessible, you might as well start investing in this property.
- Rural Properties – Thinking also about investing in rural properties is good because there is less competition for real estate investing in this area, which is why the prices are lower compared to a metropolitan city. Oftentimes, investing in rural properties requires you to pay less. Rural areas also have fewer restrictions, so you could consider investing in rural properties for your long-term goals. You may invest in rural property that costs cheaper value and sell it at a much higher value in the future.
- Commercial Investment Properties – Commercial investment property is a type of investment that is solely used for business-related purposes or to provide a workplace rather than a living place. It is a property that generates profit through capital gain or rental income, and it could be anything from an office building to a residential duplex, or even restaurants or your favorite coffee shops.
Look at the following commercial real estate below that you would consider investing in:
Office Space – An office space is ideal for corporate or management services companies. There are two things that you have to consider if you plan to invest the office space, whether urban or suburban.
An office space in an urban area most likely achieves a higher rate of profit, as it sits in the heart of the city. While office space that is in suburban largely comprises mid-rise structures of 80,000-400,000 square feet, as they are located outside the heart of the city.
The office space also has grouped into three classifications: Class A, Class B, and Class C.
- Class A office space is usually considered the best building in terms of beauty, age, infrastructure, and location.
- Class B office spaces are normally old and less competitive. Investors target this kind of area for renovation or restoration. They usually rate from fair to good and do not compete with Class A with the price.
- Class C offices might be fairly run down and require maintenance.
- Industrial Use – This property includes buildings used directly for the production of power, manufacturing of products, mining of raw materials, and storage of wood and paper products, textiles, chemicals, plastics, and metals. These types of properties usually require considerable renovation to repurpose for another tenant.
This property can be broken down into four types:
- Heavy Manufacturing
- Light Assembly
- Flex Warehouse
- Bulk Warehouse
- Multifamily – The multifamily property is any residential property comprised of more than one housing unit. Examples of this are duplexes, triplexes, quadruplexes, or apartment complexes. Although they can serve primarily as a residency, the main purpose of this property is for investment, whether owner-occupied or not.
The multifamily property has also four types of classifications that you must consider when investing.
- Duplex/Triplex/Quadruplex – are two, three, or four-unit properties
- Garden-style – an apartment development built in a garden-like setting in a suburban city.
- Mid-rise – a multistory building that comprises an elevator, usually in urban areas.
- High-rise – a building found in larger markets and usually has 100+ units with nine or more floors, and has at least one elevator.
If you wish to know about the differences between multifamily and single-family homes, here are the key points that you may want to know: https://eimproperties.com/multi-single-family-homes/, but regardless of whether you choose multifamily or single-family homes, you could still possess a passive income from either of the two.
- Retail – The retail property is simply occupied by tenants who have retailed. This includes coffee shops, pharmacies, restaurants, strip malls, shopping centers, nail shops, and so on.
Although strip centers are smaller retail properties, they may or may not have anchor tenants. Consider investing in shops because they have a higher return on investment.
Bottom Line
While you have several choices to choose from on how to find a good investment, it’s also better to learn more about each asset type over time. Have a good general knowledge of different types of investment properties whether residential or commercial. But what assures you when you invest in either of the mentioned lists above is the passive income you can have.
Recent Comments