How to make money investing in the 4 major property types
There are very many property types. Each of these property types is capable of making you money. When I started out, I concentrated on a few property types for obvious reasons i.e. I wasn’t experienced and well informed. Over the years, I realised that there are countless ways of making money with any kind of property type you can think of. The secret lies in finding a properly type you like and passionately pursuing your possibilities. Below are some of the major property types and how you can cash in from them.
- Raw land: This is by far one of my most favourite property types. There are countless ways of making money with raw land. For instance, you can buy raw land and sell it at a later date when it appreciates in value. You can also buy raw land, subdivide it and sell it at a profit. You can also decide to plant trees on raw land and then sell them at a later date or sell carbon credits. It doesn’t end there. You can also decide to cultivate cash crops or keep farm animals. In a nutshell, the options are countless.
- Single family homes: This type of property investment is suitable for first time real estate investors. Single family homes are very easy to rent, sell and finance. Investing in such properties is therefore recommended. It is however important to note that it can take you sometime to buy the first unit.
- Duplex/quads/triplex: These types of properties can be described as small multifamily properties. They are among my most favourite real estate property types to invest in because they combine easy purchasing and financing benefits of single family homes with cash flow benefits as well as less competition common in larger real estate investments. Also, the properties can easily double up as solid real estate investments and personal residences for smart real estate investors.
- Apartment buildings: You can also make money investing in apartments. Although apartments are challenging to finance, they are excellent sources of cash flow. It’s important to note that apartments have a great value addition potential since their value is based on the income they generate. This offers an excellent opportunity to add value i.e. by decreasing expenditure, increasing rent as well as improving management.