Forget Condos: 10 Reasons Why You No Longer Need It

Below are ten different types of real estate, along with different ways of investing in these categories. The most appropriate one for your needs is something you must select, based on your personal needs. In order to help you choose I've listed some good and bad points for each kind.

1. Renting single family homes. The benefits: It's an easier method to start, and good long term return on investment. A negative: Being an owner isn't the most enjoyable and you usually have to wait for a long period of time before you get the cash-flow-for-investment. The house also forfeits all income when your home is empty.

2. Fixer-uppers. The benefits are fast return on your investment, and the potential for much Click for source more original work. Negatives: Higher risk (many unpredictables) Additionally, you will be heavily taxed on your gains.

3. Housing with low income. Good things: Similar to other rentals, however having a bigger cash flow. Poor points: Similar to other rentals, however there are more fixes and tenant issues.

4. Rent-to own houses are sold for sale. The benefits: If purchase, then sell, under lease-to-own terms, you get higher rent, and the buyer is generally accountable for maintaining the property. Problems: Bookkeeping may be challenging, and the majority of tenants fail to complete the purchase (this can be an advantage for you, however, it does add more work to your schedule).

5. Commercial properties. Benefits: Long-term triple-net leases require little management and huge returns. But there are some negatives: It can be a challenging market to penetrate and you may lose money on empty storefronts for a year at a time.

6. Land that is split, resold and sold. Positives: Less complicated than most property investments, it also has the possibility of making big profits. Negatives: It could be slow, with expenses however no cash flow until you are waiting.

7. Boarding houses. Advantages: You'll generate additional cash flow renting rooms in a house especially in a university town. A negative side: You'll have additional headaches when you rent a house by the room, particularly in a town that is a college.

8. Put money into cash and then sell it on conditions. Advantages: A very high rate of return can be obtained through cash payments to obtain a good price, and selling on terms that allow you for a higher value and high yield. Problems: You'll need a lot of cash, as well as you have to lock up any capital investment for long time.

9. If you invest, then live there and then sell it. A good thing is that the tax law allows you to fix it , and then you can sell it at a huge tax-free profit after two years (if you reside in it) after which you can begin the process over. Negatives: You could become entangled in your purchase, and need to move frequently.

10. Pure speculation. The good points are that you can earn huge profits by buying into the direction of growth, and hold until prices rise as well as an investment that is low-risk. A few negatives: The increase in value isn't always predictable. it's expensive with no income in the meantime, and transaction fees can eat most of the profit.

There are a myriad of ways to invest in real property. These ten are just to give you a head start on what is possible, and which kind of investing matches your preferences. Once you figure that out, you could examine other kinds of real estate investment.