The hardest move you take as a real estate investor is typically your first one. I frequently speak with new investors who are feeling overwhelmed by all the aspects of real estate they are unfamiliar with, including the lingo, the market, the capital, the dangers, and the rewards.
Let me reassure you if this seems familiar: real estate investing is not complicated. Real estate investing is open to everyone. All you need to jump in is a little money saved up and some knowledge. Your savings of $40,000 or $60,000 for a 20% down payment will serve as the starting point for your long-term real estate investing and wealth accumulation.
In this blog, we have highlighted the best properties that have proven to be a great investment.
Properties Near Elementary School
The majority of new investors should start here, by purchasing a single-family home in a suburban area with a highly regarded public elementary school. Look for schools that receive at least a 7 out of 10 ratings online and base your property search in those areas.
Pros and Cons
Families will always be looking for homes in neighborhoods with outstanding schools, so investing in this kind of property is a sound long-term strategy. Some cities are easy to highlight for locating the desired property. Real estate in Peshawar, for instance, is getting hype these days to this very factor. Since families with school-age children often prefer to stay in one place longer and are more likely to renew the lease at a higher rent every year, tenant turnover tends to be lower than average.
A single-family home will bring in a modest monthly rental income, but its resale will be where you’ll make the most of your money.
After a few years, you can sell the property and make a sizable profit that you can use to buy your next piece of real estate. This is how many of the investors work by building their specialized portfolios: they purchase a number of single-family houses, which they then sell all at once for a substantial profit.
Apartments Near Universities
Housing that is conveniently positioned close to colleges and universities will always be in great demand. I’ve observed that whether they are studios, one-bedroom flats, or larger condos, almost all rental properties do well when they are close to schools. Choose a studio that is more than 500 square feet in size if you decide to buy one because smaller studios are more difficult to rent and sell.
Pros and Cons
Even while turnover is significant, vacancy loss is incredibly low. Although you should anticipate having new tenants each year, you can easily discover a fresh batch of kids by placing advertisements at the school and asking for recommendations from past tenants.
While your monthly income would be significantly higher if you own a condo rather than a single-family home, your equity will likely be lower. They have little trouble finding new tenants because they have a reliable, substantial revenue each month.
REITs
Because it doesn’t require actively purchasing or managing a property, a real estate investment trust (REIT) is a fantastic choice for novice investors. Companies known as REITs pool the funds of numerous investors to purchase and/or manage rental properties. As an individual investor, you are able to purchase shares of and receive dividends from real estate assets on an exchange using securities like stocks or ETFs.
Pros and Cons
Reliable — and possibly substantial — returns, good diversification, and high liquidity are all characteristics of REITs as investments. In particular, if you don’t have much money saved, you don’t want to actively manage a property, or you’re wary of investing all of your savings in one property, investing in a REIT is a straightforward way to get your feet wet as a novice investor.
Some REITs allow you to start investing with as little as $1,000. Start small and search for REITs with a solid track record, as evidenced by seasoned management, rising earnings, and happy shareholders.
Two Entrance Property
Having two tenants occupy the same investment property is even better than having just one. Look for a home that has a mother-in-law apartment, a furnished garage or basement unit, or a separate entry so that you may legally rent it to two long-term renters.
Pros and Cons
There is a significant demand for single-family homes with accessory dwelling units (ADUs) and other properties that can be divided into two rental properties.
if you want to know about some interesting fact about Ilimecomix comic
However, if you find one that is lawfully constructed and zoned, you can create two reliable sources of revenue with a single acquisition. Make sure each unit is leased for a period longer than 30 days at a time. In most cities, if you try to utilize them for short-term rentals, you’ll run into legal problems.
