4 Different Types of Residential Real Estate to Invest In
Monday, October 12, 2020, 6:00 AM | Leave Comment
Investing in real estate can be a great way to diversify your portfolio with physical assets that tend to weather market changes better than other types of financial products.
Residential real estate, specifically, offers a significant return on your investment and allows you to help countless families obtain a quality place to live and enjoy time together.
One of the best parts of residential real estate is that there are several varieties to choose from, allowing you to mix and match based on your tastes and skillset.
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Single-Family
One of the most common types of real estate that investors purchase is single-family homes. Single-family homes provide a great opportunity because they’re readily available and can provide significant income opportunities when you get good renters in the homes that you buy. Plus, if you’re able to repair the homes yourself, you can add even more to your bottom line.
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Campgrounds and RV Parks
While not a permanent residence for most people, campgrounds and RV parks still provide a solid investment opportunity, especially as people seek out experiences over possessions to enrich their lives. Given the unique operating requirements of operating one of these facilities, it’s a good idea to do your research before making an investment. For help in purchasing a facility like this, an RV park broker can be a great asset that can help you get the best deal for your money.
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Multi-Family
Another solid residential investment opportunity is multi-family dwellings. Although they require a higher upfront investment, multi-family real estate provides an exceptional potential upside because you have multiple people paying rent on a monthly basis. As long as you can work to keep your overhead costs low, you could stand to make a substantial profit from a long-term investment in multi-family real estate.
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Short-Term Rentals
If you want to own real estate in tourist-friendly destinations, then you can set these properties up as short-term rentals. Whether you market these properties yourself or use a third-party service, you can stand to make substantial income, especially during busy travel seasons. Just be sure to follow all local laws regarding your short-term rental properties, as these tend to vary from city to city.
The key to investing in real estate is to add more properties to your portfolio whenever you can. Investing in real estate is like pushing a snowball over the side of a hill. Once you collect enough momentum with enough properties, you’ll be able to do just about anything you want and have plenty of income to show for it.
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