It is common knowledge among investors that each type of real estate investment has its potential benefits as well as pitfalls. This includes some quirks in cash flow cycles as well as lending traditions. Standards exist on what are considered appropriate or normal. This is why you have to study the opportunities well before you add properties to your investment portfolio. You can check on Property Press Online for guidance.
Before you get to the point of choosing the different types of real estate investments that are offered to you, you have to be aware that investors don’t buy investment real estate in their own name. More often the reason for this protection of personal assets.
Categories of Real Estate Investments
When you aim to develop, acquire, own, or flip real estate, it is best to know the different categories of real estate investments. These are residential, commercial, industrial, retail, and mixed-use.
Residential structures are houses, townhouses, vacation houses, and apartment buildings where a person or a family pays to stay in the property. The duration of their stay depends on what is agreed upon under the lease or rental agreement. Commercial spaces are mostly skyscrapers and office buildings. The usual agreement for commercial structures is a multi-year lease since this ensures stable cash flow. Industrial real estate structures include warehouses, car washes, storage units, or special purposes real estate that can generate sales from facility usage. Retail properties on the other hand include strip malls, retail outlets, and shopping malls. Usually the property owner gets a percentage of the revenues of the tenant apart from the base rent. Mixed-use properties are those that are a mix of any of the other real estate categories as a single project.
Features of a Profitable Rental Property
If you are looking for a property that you want to rent out soon, you can check the portfolio of sites like Property Press Online. The best features to check on include the neighborhood. The neighborhood where the property is located would determine the types of tenants you attract as well as the vacancy rate. If it is near a university, then your potential tenants are probably students. Think about the property taxes. These will vary based on your target area. It’s crucial for you to know how much you will lose. If you are planning to invest in family-sized properties, consider the quality of the local schools. This will add to the overall value of the rental property when you decide to sell it. Check on the crime rate of the area. The local police or the local library must be able to provide information on the crime statistics of the neighborhood. Find out if criminality is rising or declining. Look into the job market in the area. Locations that offer many employment opportunities are more appealing to tenants. You can check with the U.S. Bureau of Labor Statistics (BLS) for job availability in the area. You may also check the local library. Take a tour of the neighborhood and check the parks, gyms, movie theaters, public transportation, and other amenities that may appeal to tenants.