What is the Best Type of Real Estate for Me?

Hi everyone, welcome back to my video blog. Today’s video is part two of our series on investment properties. I want to talk about the five major types of real estate and the pros and cons to each.

1.    Single family homes: These are my personal favorite. People always need a place to live and rent. Maybe they don’t qualify for a loan to purchase a home, or maybe they are in a transitional period. For the most part too, you will have good tenants who will take care of your property.

2.    Duplex-type Units: These properties attract a different group than the single family homes. The benefit of this type of real estate is you generally get a better cash flow. The cost to buy versus the rent coming in is typically better than the single family homes. A downfall, though, is sometimes it can be a lower income tenant and you may have a hard time collecting rent at times.

3.    Apartment buildings: These are not for beginning investors. Owning an apartment building is like playing monopoly. It is a great vehicle of income, however, it is very expensive to purchase.

4.    Student rental housing: This is a very popular investment in the Athens area. Rent is typically charged per bedroom, so you can charge a little more. You also have parental guarantee. If you are considering this investment, it’s important to know about the school’s housing program and how enrollment is too.

5.    Commercial: Most people use the other investments as a stepping stone for commercial. You get longer leases and since a corporation or business is paying, it easier most of the time to get paid. The downfall, though, is it costs more.

If you have any questions about the types of investments properties or want to get started, give me a call at 706.621.6085 !