Types of Real Estate Investing

There are many types of real estate investment that young investors can look into. Low risk investments include:

Flipping houses. Once can search, buy old, abandoned, and/or damaged houses and renovate for some amount of money. Once the property is nicely renovated, it can be put out for sale or rent. This would be a passive source of income. It is also profit making since the amount to invest upfront is often smaller and affordable as compared to the income that comes in later on. It, however, will take a lot of time and efforts to fix up the house and get it ready for rental/sale. As always, always assess for the location of the house before buying.

Manufactured/mobile homes. One can search, buy the land, then buy and place the mobile/manufactured home on the land. The land doesn’t have to be big (0.5 acre for $10000) and home doesn’t have to be big or pricey (650 sq feet for $27,000) but they will generate a consistent income for the owner months and years to come. Manufactured/mobile homes are a very fun and secure way to invest in real estate because they are easy to acquire (e.g. not too much investment or permitting) as well as quick and convenient to handle.

Commercial real estate. Commercial real estate are often more involved to acquire and manage, however, they are full of opportunities. All renovations and utility hookups are similar to residential, however, up keeping and permitting might need more time and effort to acquire. The monthly incomes are greater as compared to residential real estate since the commercial properties tend to be bigger. Same as residential, once the property unit is vacated, the will be short of income and it’s will be up to the owner to find a leaser.

Foreclosures. Acquiring a foreclosed property would have it’s own advantage. Foreclosed properties can be furnished as the occupants could leave everything behind. That is an added bonus when the property is being taken over. Foreclosed properties at times can also be more reasonably priced than a regular property.

Renting out the land. If one has a large land parcel, he/she can rent out some square footage and create an passive source of income. For instance, one can rent out a portion of the land for RV parking, either on a monthly or as-needed basis. The land can also be rented out for commercial billboards. Lastly, one can buy only the land and rent out the whole parcel for trailers and/or agriculture.

Topics: real estate, investments

Work cited: https://www.creonline.com/real-estate-investing-types/