Real estate is a perfect option to invest in. Once you have decided to contribute your sums to real estate, it’s crucial to explore the market and compare all lucrative types of property.
There are 5 main reasons why the real estate investment is a good idea:
- Investing money in a real and tangible business (real estate market is more stable than the cryptocurrency industry or stock market)
- A wide choice of investment objects
- Unique tax incentives (tax cuts due to renovation, depreciation of the building, maintenance, etc.)
- Asset growth prospect
- The possibility to use your investment object anytime you need
Let’s have a look at the top investment alternatives that may bring you positive cash flow potential.
Residential Real Estate
Residential real property is considered to be the best option worth investing in. It is a perfect solution for many investors as it makes it easier to turn profits consistently. Nevertheless, it is significant to take into account different levels of competition on the markets and the variability of residential real estate strategies. That’s why to concentrate on choosing the right strategy when it comes to buying an investment property.
Residential real estate includes everything from single-family homes to multi-unit properties that can be rented out to tenants or sold to homeowners. This type of real estate is believed to be the most common in real estate investing.
There are many kinds of rental property in residential real estate, although the most popular is single-family homes. This type of property is excellent for new real estate investors as it is easier to handle all the peculiarities. However, it does not guarantee you the right to purchase any home you want. In order to make a positive income, you have to get the property at a posted price. The reason it is the best investment property is its advantages. Thus, in case the market fluctuates and you have to lower rent or address the sustaining issue, you will be assured it won’t affect your cash flow.
Another type of residential real estate, which might become a great start for real estate investing. Why? First of all, affordability and low upfront cost. You won’t have any troubles with the mortgage payment as mobile houses are keeping it low. Therefore, you’ll be able to receive positive cash flow monthly. By the way, if you have on your mind implementing investment property for sale, mobile homes are the best option.
Secondly, having invested in mobile homes will bring you impressive income because of the low amount of maintenance. You won’t have to deal with the typical issues the owners of the larger houses usually face. However, the most valuable thing about investing in mobile homes is the land. After some time the land the home is situated in may become even more lucrative, so literally, you’re investing in future opportunities.
Commercial Real Estate
The best commercial properties to invest in involve industrial, retail, hospitality, office, and multifamily projects. Investors willing to enhance their local communities may find a great solution in commercial real estate investment. It has a potential for positive cash flow, longer leases, and less competitiveness compared to other types of real estate.
Raw Land & New Construction
Raw land includes any vacant land available for purchase and implies to be in demand in markets with high projected growth. New construction differs from raw land only in the presence of property already built on the land. Nevertheless, both types of real estate property are popular to invest in due to the rapidly growing markets.
Although investors should be ready to conduct thorough market research to calculate all the risks and maximize profits before investing in raw land and new construction. Examine the desirable area and make an analysis that will help you avoid questionable market factors.
So, if you have decided to invest in real estate, pay attention to residential real estate because it is the most easily maintained and profitable option. Apply exit strategies that mainly are wholesaling, rehabbing, purchasing and holding properties, which will bring you consistent rental income. Also, think about over-investing in international real estate, which will allow you to get higher returns and improve your tax strategy.