If you are a first time investor, this guide will be helpful for you. We’ll go over the different types of real estate that you can invest in. It’s always a good idea to consider your options based on the factors that apply to you.
You might have enough money to invest in different types of residential properties. You might even consider commercial properties as well. Either way, it’s always important to know that you have options to work with and check out living in Olive Branch Mississippi if you are interested in real estate.
If you want more information on the different types of property you can invest in, check out the Teifke Real Estate website. Follow this link here for more information: https://www.teifkerealestate.com/round-rock-realtor/. Let’s get started with the list of real estate properties you can invest in as a first timer.
Of course, a first time real estate investor will look to apartment buildings as a good investing opportunity. This means you’ll have the potential to have rental income right at the start. You may have tenants already occupying the building and automatically, you’ll start getting rental income.
If you own one, you might be able to manage it yourself. However, there may come a time when you’ll have a few more of these apartment buildings under your belt. At that point, you’ll need to hire a property management firm to handle some of the heavy lifting.
Apartment buildings can be easy to maintain and the expenses may not be so high. This will depend on several factors such as the amount of land it sits on, how many buildings there are in the complex, and the cost of regular upkeep.
Single family homes
Single family homes will be large enough for one family (hence the name). The rental rate may be on par or even a bit higher compared to what you’ll collect from a tenant living in a one bedroom apartment. Single family homes will be perfect if your ideal tenant is someone with a family.
Single family homes can also be occupied by someone living alone, with a spouse or significant other, or even roommates. Regardless, they are great for first time home buyers since they can be purchased at a reasonable price (depending on your budget).
The expenses may be less compared to apartment buildings. So it won’t be a bad choice for first time investors. However, you might have the option to pass the expenses onto the tenant such as trash removal, electricity, and water among others.
Townhomes will be located in the city or suburbs. They will be located right next to other townhomes. These will be a bit more upscale, so they may command a higher price point when you buy them initially.
Plus, you may also find yourself charging a higher amount of rent for that reason. These townhomes will be a good option for families, young professionals, or even roommates living together. While they are desirable, townhomes do come with some drawbacks.
For example, townhomes will be connected to one another. Meaning that there may be a wall that’s thin enough to where you can be able to hear what’s going on next door. So you’re going to look for tenants who may have a tolerance level for dealing with a bit of regular noise coming from the neighbors.
Otherwise, townhomes may be a turnoff for someone who just wants a little bit of peace and quiet. With that said, townhomes are great if you are looking for property that will give you a good return on investment for the long-term.
These can include not only apartment buildings, but also condos as well. You can even have the option of living in one of these units yourself. A duplex is considered a multi-family home.
Which means you can live on one level and open up the other one to a tenant looking for a place to live. Living in a multi-family unit can also score you some excellent benefits in terms of your taxes and insurance. So if you are looking to get an excellent return on investment while saving yourself money in the process, multi-family homes might provide you with that opportunity.
This is an unconventional type of real estate investing. But you can get a higher return on investment from it. You can purchase a home in as-is condition at a low price point.
From there, you’ll be able to put in a large amount of money into repair and renovations. Once they are complete, you can turn around and sell the home at a higher price point. This is assuming that you don’t want to exercise the option to rent it out for continuous rental income.
Either way, acquiring a home in as-is condition can benefit you in more than one way. Selling it outright and getting extra cash will be a good option. And you can use that cash to repeat the process as much as possible.
A similar way to do this is known as the BRRRR method. It stands for Buy, Rehab, Rent, Refinance, and Repeat. You can buy a home in as-is condition, rehab it with the repairs and renovations, rent it out, refinance it, and repeat the process as many times as you like. If you got the money, you can do this for as long as you want.
First time real estate investors should use this guide as a reference. Especially when they have gained enough experience and a healthy return on their investments. You may invest in different properties or even put the BRRRR method to good use.
Whatever your real estate investing goals are, you can find the right properties that will fit your needs and preferences. Managing the properties can be a challenge. But you can find the right people at the right price to get the job done for you (especially when you own multiple properties).