9 TYPES OF INVESTMENT PROPERTIES

9 TYPES OF INVESTMENT PROPERTIES

SINGLE FAMILY HOMES-The single family investment property is a house bought with the intention of renting or selling it to a single tenant or buyer.  The single family home or SFH is the easiest property to rent out because most people prefer to rent a home instead of an apartment.

DUPLEX A duplex consists of two apartments typically upper and lower but can be a side by side. These properties are not very typical but can provide a good return because it allows for two families to occupy one parcel.

MULTIF AMILIES A multifamily can be from 4 to many units and are commonly larger in the bigger cities. These can provide a great return because of having multiple tenants under one roof. With having multiple single family properties the roof and exterior and interior mechanics will vary and may cause more wear and tear where as a multi-family property will have one roof and the same mechanics

CONDOMINIUMS A condo can bring good return because of the fact that most owners are only responsible for the interior and not the exterior. The only drawback is the association fee that has to be paid monthly. This is and can be deducted from the rents bringing down your return.

OFFICE SPACE Office spaces can vary on your return depending on the neighborhood where the offices are. When you are dealing with office parks typically there are a multitude of tenants that will share larger office buildings and this can be great advantage. If there are multiple small tenants this can be a plus in in exchange for an office building with only one large tenant. Once that tenant moves out, it could and may take some time to fill the space.

RETAIL CENTERS Retail centers are a great way to invest in real estate especially when you have national tenants. Today’s retail space typically comprises of a mixture of “Mom & Pop” stores along with national chains. The best way to determine the occupancy of a retail center will be the traffic count. With a large traffic count you will attract more national stores.

 COMMERCIAL SPACE– Unlike the residential space the commercial space can be rewarding because in most circumstances you are able to charge NNN charges which include and are not limited to mortgage, taxes, and insurance. Not to mention that you can also charge CAM charges (cleaning/maintenance). The only drawback is that it does take longer to get quality tenants that will be long term.

RESIDENTIAL This is most common investment property type. There is always a market for residential tenants. It is only a matter of correctly marketing and pricing your property and you will get it rented. Most tenants have children and will want multiple bedrooms and so it is important that you can accommodate these tenants.

INDUSTRIAL This market is the most difficult to accommodate and takes a savvy and skillful investor. When it comes to the industrial market you have to be aware of zoning and city ordinances. You also must be aware of the environmental aspect of the property. Industrial use can sometimes be messy and the if there are chemical usage there may be spillage that can penetrate the ground leaving the owner responsible for the cleanup and this can very costly.