Which Types Of Real Estate To Invest In

Which Types Of Real Estate To Invest In



Which Types of​ Real Estate To Invest In
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 .​
Here are a​ few ways to​ consider, with their advantages and​ disadvantages.
1 .​
Rental houses .​
Advantages: One of​ the​ easier ways to​ get started, and​ good long term return on investment .​
Disadvantages: Being a​ landlord isn't much fun, and​ you typically wait a​ long time for​ the​ big pay-off.
2 .​
Rent-to-own houses .​
Advantages: When you buy, then sell on a​ rent-to-own arrangement, you get higher rent, and​ the​ buyer is​ usually responsible for​ maintenance .​
Disadvantages: the​ bookkeeping is​ tricky, and​ most tenants don't complete the​ purchase (this can be an​ advantage too, but it​ does mean more work for​ you).
3 .​
Low income rentals .​
Advantages: the​ same as​ with any rentals, but with higher cash flow .​
Disadvantages: the​ same as​ with other rentals, but with more repairs and​ tenant problems.
4 .​
Fixer-uppers .​
Advantages: a​ quick return on your investment, and​ it​ can be more creative work .​
Disadvantages: Higher risk (many unpredictables) and​ you get taxed heavily on the​ gain.
5 .​
Buy for​ cash, sell for​ terms .​
Advantages: You get a​ high rate of​ return by paying cash to​ get a​ good price, and​ selling on easy terms to​ get a​ high price and​ high interest .​
Disadvantages: You tie up your capital for​ a​ long time.
6 .​
Buy land, split it​ and​ sell it .​
Advantages: It is​ simpler than most real estate investments, with the​ possibility of​ great profits .​
Disadvantages: It can take a​ long time, and​ you have expenses, but no cash flow while you wait.
7 .​
Boarding houses .​
Advantages: You can get a​ lot more cash flow renting a​ house by the​ room, especially in​ a​ college town .​
Disadvantages: You can get a​ lot more headaches renting a​ house by the​ room, especially in​ a​ college town.
8 .​
Commercial real estate .​
Advantages: Long term triple-net leases mean little management and​ high returns .​
Disadvantages: Tough market to​ break into, and​ you can lose income on vacant storefronts for​ a​ year at​ a​ time.
9 .​
Buy, live in​ it, and​ sell .​
Advantages: the​ new tax law means you can fix it​ up, and​ sell for​ a​ big tax-free profit after two years, then start the​ process again .​
Disadvantages: You have to​ move a​ lot.
10 .​
Speculation .​
Advantages: Buying in​ the​ path of​ growth and​ holding until values rise can yield large profits, especially if​ you buy low to​ start .​
Disadvantages: Prices aren't that predictable, you have expenses with no income while you're waiting, and​ transaction costs can eat much of​ the​ profits.




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