How to choose a real estate investment property

The first decision you should make before looking for a real estate investment property is the type of property you want. There are many factors to consider before making your decision because each one is different.

In this article, we will generally discuss what you are looking for regardless of the type you decide, then we will see five common types of real estate investment properties.

What are you looking for

1) General site: the website, the website and the website is a slogan in real estate. Unless the property is located in an area that holds rentals or flaunts them, and so you can sell them for profit, forget it.

2) Site improvements: does the property require repairs that can cause its cash flow to decrease, or are there repairs that will significantly increase its cash flow and return?

3) The rental model used: in the case of a commercial building, is it insured or highly rented? In other words, do you buy positive or unfavorable income and for how long?

4) The resulting income: How much income does the income characteristic generate, is it realistic and can it last? Is there room to increase revenue?

5) Type of expenses: What is needed to keep the property in operation? Is there anything out of the ordinary and is there an opportunity to reduce or eliminate some expenses?

7) Management requirements: the property will require a professional management company, or perhaps a resident manager, or something you can deal with.

8) Finance: can you benefit from the property? What about the prices and conditions for which you and / or the investment property qualify for the best possible loan? What are loan payments?

9) Available depreciation benefits: how much income can differ by reducing the value of the property?

10) Unique features: Is there anything about this private investment that differentiates it from other real estate investment opportunities? Perhaps its location or construction or can provide great potential in an upward direction.

Types of real estate investment

1) Apartment complex: this is the most popular form of real estate investment and can include anything from duplex to high-rise buildings. The size and combination of individual apartments are generally linked to the requirements of the local market and generally include larger studios and apartments. The apartments can be rented on an annual or monthly rental basis. When present, coin laundries, storage facilities or garages can generate a small additional income from the owner. A well-managed residential complex can be a very profitable investment and a great way to start creating new investors.

2) Office buildings: this type of investment property requires more multi-smart properties, so first-time investors should be careful. Office buildings are generally rented on the basis of square footage instead of a fixed price per unit, which generally includes a cost for a proportionate share of common areas such as entrances and hallways. Depending on the lease, tenants may also be required to pay a proportionate share of parking and roof maintenance, and, as a rule, tenants will pay all or part of the cost of finishing the interior of their suite. Office buildings usually make solid investments and are relatively easy to manage.

3) Shopping centers: this type of real estate investment is very popular in many parts of the country, but as with office buildings, it contains some unique features that an individual investor must take into account. A mall can mean anything from two stores (known as the mall) to large regional shopping centers. Tenants generally sign a lease and are expected to share the cost of maintaining public parking, landscapes, daily cleaning of land, etc. in what is known as a common area maintenance fee (CAM). Small neighborhood centers with moderate cash requirements can be an excellent way for beginners to start this type of investment.

4) Warehouses and industrial buildings: rental warehouses provide small or large bays that are used for storage and small workshops. This rent is usually monthly and, therefore (because tenants can leave at any time), it is one of the least stable real estate investments. Industrial buildings generally have more space and are generally rented with longer terms for more stable tenants, such as manufacturing plants. The final investment here is the case of “sale / lease” in which an important company sells its premises and then rents them to you net, but it is difficult to find because it is an excellent investment.

5) Mobile home gardens: this type of real estate investment has become one of the most sought after in recent years because it provides retirees and young couples an affordable home. In this case, a pillow with water, sewer and electrical connections is rented, as well as a concrete patio area and bands attached to someone who wants to place a mobile home there. Other improvements include streets (which can be transferred to the local municipality, which frees the owner from street maintenance), recreational facilities (possibly with a building) and laundry facilities. Because mobile home gardens are profitable and easy to manage, they can be a very good investment.

Complete books have been written on the five forms of real estate investments, and it is clear that we have kept them very brief just to give you an idea. However, we hope it helps your real estate investment strategy.

We should also mention that you should never buy an investment property without doing a thorough real estate analysis. Quality real estate investment software makes it very easy. So be sure to check it out. Here is your success.


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