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Different Types of Real Estate Investing You Should Consider

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Whether you’ve dabbled in real estate investing for years or whether you’ve just started considering investing, there are lots of different kinds of real estate that you should be aware of. Different types of real estate have different benefits and challenges, which you can only discover upon researching and experiencing them individually. In order to find the type (or types) of real estate that will work best for your lifestyle and area, here are a few of the most common kinds of real estate that you should consider. 

Single-Family Homes

If you live in an area that houses lots of young families, investing in single-family homes could be a great option for you. Such an area would likely be surrounded by lots of schools and activity sites for children and teens. Generally, the parents of families that could afford a home will be college educated and financially stable. Their children will usually be in elementary school, middle school, or high school. One of the great benefits of investing in this kind of real estate is that there is a constant need for this kind of property, and the owners or renters are generally able to afford a more expensive rent or mortgage, which can be financially beneficial for you. If you notice that there is a single-family home available for you to invest in that is located in an area similar to this description, it could be a great investment option for you. 

Multi-Family Homes and Apartments

Another great real estate investing option is buying multi-family homes and apartments. This type of housing is common in many areas, particularly in big, largely populated cities. Generally, multi-family homes and apartments house many different variations of families from retired couples to newlyweds to single parents with children. While buying an entire apartment building can be a lot more expensive than investing in a single-family home, it also has a lot more potential for financial growth. The more apartments or homes you have available, the more families you will have paying their monthly rent, and the more profit you will make. 

Commercial Real Estate

If you aren’t interested in providing family housing, you might consider investing in commercial real estate. Commercial Real Estate, or CRE, generally provides significant and consistent income, depending on the property. There are many different kinds of CREO properties that you could invest in from storage and retail to business office and industrial. Different kinds of properties could thrive depending on the area where they are located. For example, in a big city, large industrial or office buildings could do fairly well. On the other hand, in a smaller city, retail CRE might do better. 

Empty Land

If you haven’t been able to find any properties or buildings that you’d be interested in buying, consider investing in an empty lot of land. Buying empty land can be an exciting opportunity, as you’ll have the chance to create various types of real estate on your land when you’re ready to develop it. You can also design the building’s style and architecture in a way that could greatly increase its selling or renting price. That being said, you need to have land already or a contract soon closing to start building your home, apartment, or building. 

Student Housing

If you live near a bustling college campus or town, you might want to consider investing in student housing. The great thing about investing in student housing is that not only is there a consistent need for student housing, but there is actually an increasing need for student housing. There are some universities where students have to find their housing apartments a year in advance just to be able to attend school. If you open up a multi-room house or an apartment building for students to live in, you’ll be guaranteed to have consistent renters during the school year. 

Overseas Real Estate

So maybe you’re more adventurous and interested in investing in overseas foreign real estate. If this is the case, there are a lot of great opportunities for you to grow financially, but there are a few risks that come along with that. One thing about investing in overseas real estate is that there might not always be a constant need for your property like there would be in family housing. For example, if you invest in a hotel or apartment rental in an exotic overseas location, you’d want to ensure that your location continues to be a popular commodity for locals or tourists so that you get a return on your investment. So, do your research about the countries that you’re interested in. Try to find locations and properties that will reportedly do well for the next twenty years at least. Luckily, many properties can be more affordable overseas compared to properties in the U.S., so if you take your time in making your decision, you should be able to have a sizable return. 

Event Spaces

A real estate investment option that could include a little more hands-on management would be an event space. There is always a need for event venues as they can host anything from a birthday party to a wedding to a work convention to a funeral. This type of real estate would vary in its return depending on the type and duration of the event hosted. It would also involve a lot more flexibility, as different events could occur daily. 

Travel Rentals

If you’re looking for an investment property that is a little bit more low-maintenance, travel rental properties could be perfect for you. This would include any kind of property that functions like a motel for travelers needing to stay for a few nights while they’re vacationing. These types of rental properties do really well in warmer locations, especially those that are located near tourist sites, national parks, or amusement parks. When summertime hits, you’ll probably notice the huge influx of travelers that pass through your rental spaces. Plus, the nice part about owning a property that has busier seasons is that you can travel and use them yourself in the off-seasons. 

Remember, if you’re trying to get into real estate investments, don’t feel pressured to do one specific type of real estate. There are so many different possibilities of real estate properties that are successful in their own unique ways. Make sure that you take the time to find the options that will work best for your skillset, your lifestyle, and your ideal real estate area.

Read this next: Famous Warren Buffett Quotes on Investing, Life & Success


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