Real estate investing provides investors with plenty of choices, which will range from the classic buy & hold strategies to newer house-hacking tricks. In this post, we are going to take a look at some of the popular real estate investing choices available, without wasting any time; Brad Zackson will help you find the right investment option:
- Residential real estate
Residential real estate is the first option that most of the investors think about especially when you are considering the real estate investments. Such investments involve single family home that an investor purchases, maintains, as well as leases and resells. The residential real estate will be the most attractive choice for a lot of investors, as rental rates often appreciate much faster than the wider housing market & rental returns are attractive.
- Commercial real estate
Commercial real estate provides the different approach for the real estate investors. Though the main tenant of the residential real estate is individual, the commercial real estate tenants will range from the small business owners to bigger corporations. Investing in the commercial real estate will be expensive and also involves various regulations; however it can be highly lucrative as the tenants generally have better capital to back up their payments and higher budgets to finance the properties.
- House Hacking
House hacking is a new real estate investment method that will provide multiple income streams. This approach mainly involves buying the bigger home, generally one with the multiple bedrooms, and renting out some of your bedrooms when living in the rest portion. The approach will significantly reduce total cost of your living and will generate extra income, thus making it the best selection for the investors on budget.
Buy-and-hold leasing is also a popular approach for real estate investing. In such case, investors buy one single-family property & lease this property to their tenant, who pays monthly fee for their right to use that property. Investors will benefit from regular cash flow that comes from this arrangement, and from appreciation in the property value with time.
- Raw land
Land investments involve buying the vacant land that will be developed or just held for the future appreciation. While the strategy doesn’t offer the similar potential for the rental income as other real estate choices, it will be very attractive for the investors searching for the long-term appreciation play. Thus, real estate investing provides a wide variety of the options that will fit different goals & objectives.