The most profitable types of properties to invest in right now

By
Services for Real Estate Pros with Representative

Real estate investments can be a tricky business. You don’t just purchase a property randomly and then expect it to generate money in the long-term. It would be great if things were that simple, but unfortunately reality is much more complicated. Since the real estate market is known for its volatility, especially in times of uncertainty, it takes special skills and knowledge to avoid rookie investment mistakes and make smart decisions. The risks associated with real estate investments are not to be taken lightly.

The real estate market is also extremely varied. This means there are plenty of options to make money if you plan on venturing into real estate investment. However, not all properties are created equal in terms of return on investment. Some can bring you more money than others, and some can actually leave a whole in your budget. That’s why every aspiring real estate investor should start his journey by learning how to choose the right properties to invest in and navigate the intricacies of the real estate market. So here are some of the most profitable types of properties to consider at the moment.

Buy to let properties

Purchasing properties to rent them out to tenants is probably the oldest trick in the book when it comes to real estate investment. Long term rentals are a simple strategy that has helped many real estate investors earn large amounts of money over time, and it still works like a charm in the current real estate environment.

If we were to analyze the potential of buy to let properties, there are two different ways in which they can bring you money. The first instance is when you collect rental money from your tenants. Since you receive rental payments every month, if you follow the traditional property management model, this will provide you with a steady income stream. Thus, investing in real estate is an effective way to earn passive income.

The second instance is when you sell the property you’ve been renting out to buy a bigger more profitable property that will help you increase your rental income. All properties are expected to increase in value over time, but appreciation is closely linked to market trends and most importantly to location. That’s why it’s extremely important to do a thorough research of the area where you’re planning to buy a property before you close a deal.

Fixer uppers

Investing in fixer uppers can be a risky choice, but if managed properly, this type of investment can turn into a goldmine. The concept is simple: you buy a property that is not in the best condition for a cheap price, you fix it and then you sell it for a much higher price.

This is the ideal scenario, but in order to apply this tactic you must have a bit of experience in the field and know how to spot properties with great potential. You also have to sharpen your marketing skills in order to sell your property fast and make a good profit at the end of the day. As you can see, fixer uppers provide an excellent opportunity for quick profit, but they also come with higher risks.

Commercial real estate

If you really want to build wealth, you have to look beyond residential investment properties and tap into the commercial real estate market. The opportunities here are much more diverse. There are many types of commercial properties that will bring you great profit, from hotels and industrial buildings to retail and office spaces.

The entertainment industry is worth taking a closer look at, since it experienced significant growth in recent years. The casino environment offers a good example. With the advent of online gambling, the no deposit bonus and other great offers it provides, the casino landscape is drawing in more players by the day. Casino operators are opening up more venues in a variety of locations, which means investing in casino properties can be a very smart move.

Properties in areas with growth

Whether we’re talking about residential or commercial properties, the golden rule of real estate investing is to choose your location wisely. The area where the property you want to buy is located plays a very important role in determining the return of your investment.

Generally, properties situated in high-traffic areas are more profitable since attracting new tenants and keeping the old ones is much easier. The same goes for fast developing areas where the economy is booming or popular neighborhoods. The properties here will always provide higher incomes if you choose to rent them out or sell them at some point in the future. 

Properties with a high number of tenants

Similarly, the most profitable properties are those that can house large numbers of tenants. Think vast apartment complexes, RV parks, large office buildings, resorts, retail spaces etc. it all comes down to simple math: the higher the number of tenants, the bigger the rental income you’ll receive.

Besides, there’s always a demand for these types of properties, so finding tenants shouldn’t be a difficult task. They usually require a larger initial investment, but if you consider the ROI you’ll get, it might be worth the effort.

As long as you have the necessary funds, you can invest in virtually anything. People can build wealth by making all types of investments. Some choose to invest in gold or cryptocurrency, while others invest in mutual funds. New trends like investing in slot companies are also popular, prompting people to search for new opportunities in this area. Beginners usually rely on the help of an investment company to help them navigate new markets and make the best decisions. But of all the available options out there, real estate investments remain a top choice if you want to make your money work for you. The trick is to do your homework thoroughly and to choose the properties to invest in wisely.

Comments (2)

Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

Cynthia,

We so agree, that long term rental is the best way. Make it the best Friday, the weekend is right around the corner.  Thanks for the post.  Bill Salvatore 

Apr 16, 2021 05:13 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Cynthia! Yes, real estate makes a great investment. Especially using tools like 1031s and CRTs

Apr 16, 2021 06:56 AM

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