Investment in real estate still becomes one of the most favorite and promising options for many people. If you want to invest in real estate property, you must be familiar with the types of real estate investment properties.
what are the 3 types of real estate you can choose? Let’s find out further and you will find the good and drawback of each option so you can choose the best option that can bring you the best return on investment.
Vacant Land
The very first type of real estate investment property is vacant land. It can be used for various purposes, including commercial properties, residential properties, ranches, or even farms.
You can buy and rent vacant land, but you can also buy and build it. Of course, you can buy vacant land and sell it to get a return. No matter what your choice of investment method is, you have to consider some things.
The size of vacant land property is quite large and it means that the price is quite large, as well. That is why the real estate agents will get a corresponding commission to help you deal with the purchase.
You must not forget to check on the water supply if you want to buy vacant land for development purposes. The land can also be inspected within a specific time frame before finally buying it.
You will not find any complicated listing and transaction process when buying vacant land because there are no floor plans, insurance issues, or structural inspections to address.
Residential Properties
what are the 3 types of real estate, the next one? It is a residential property that becomes the most popular not only with new real estate investors but also experienced ones.
It can be single or multi-family houses, but it can also be condominiums, duplexes, vacation homes, and many more. It does not have to be new construction, but also existing homes for sale.
If you want to buy a home for a good price for real estate investment, you can go to the auction. By acquiring property at a lower price, you can invest more in the property before selling or renting it for profit.
You can visit your state’s website to find out more about properties for sale at auctions. Investing in condominiums can be a great choice to get a monthly income by renting them.
Commercial Properties
The last type of real estate investment property is commercial property. You might think that it must be existing buildings for business, but it can also be empty land zoned for commercial use.
The accounting method for valuing commercial property can be more complicated because it will include the income potential, historical revenue, and cash flow with the removed owner perks.
You have to be careful when entering this specialization if you do not have extensive experience in business valuation yet.
More complex businesses can be found when the buildings are used for offices, industry, shopping malls, supermarkets, gas stations, or other types of commercial property.
What are the 3 types of real estate questions that have been answered? Which one is the right choice for your real estate investment?