There are different types of real estate, and different ways to invest in them. Which way is best is for you to decide, according to your particular needs and financial situation. Here are a few ways to consider, with their advantages and disadvantages.
Different Real Estate Investments
1. Rental houses. Rental homes are one of the easier ways to get started, and good long term return on investment. Although, being a landlord isn’t much fun, and you typically wait a long time for the big pay-off. Go over the pros and cons of what this might look like for you and go from there.
2. Rent-to-own houses. When you buy, then sell on a rent-to-own arrangement, you get higher rent, and the buyer is usually responsible for maintenance. If you think this might be for you, make sure you also consider the bookkeeping. It can be tricky, and most tenants don’t complete the purchase (this can be an advantage too, but it does mean more work for you).
3. Fixer-uppers. These can provide a quick return on your investment, and it can be more creative work. It does yield a higher risk (many unpredictables) and you get taxed heavily on the gain.
4. Buy land, split it, and sell it. It is simpler than most real estate investments, with the possibility of great profits. It can take a long time, and you have expenses, but no cash flow while you wait.
5. Commercial real estate. Commercial real estate can be great and long term triple-net leases mean little management and high returns. It can be a tough market to break into, and you can lose income on vacant storefronts for a year at a time.
Investing in real estate can be a rewarding experience. There are many options and opportunities in real estate investing. Depending on your financial situation and what you would like to get into, there is most likely a niche for you to fit into.