For those who are looking for their first rental property investment, diversity in the market only serves to confuse them. There are just too many variables to the equation that leads to a successful investment. However, fret not, because we are about to show you some of the best types of property investment opportunities in the rental market. Buying a property at the right price and in the right location ensures that you’ll receive a steady stream of passive income monthly while assuming the lowest risks possible.
These homes are especially attractive to young families. A recent report by Forbes showed that single-family homebuilding rose 11 percent in December 2019, the highest ever since 2007, which was before the economic crisis.
To be more profitable, pick homes that have sound structure but require a bit of renovation. These homes will be priced much lower than the current market rate. This is to provide you with a protective cushion in case the market value takes a dive. Once renovated, this type of home can bring you steady income for years to come, provided you pick an established neighborhood that provides values to the renters.
Single-Tenant Triple-Net Properties
This type of property is perfect for investors who don’t have the time to actively manage the property. Basically, you’ll lease out your property to a single tenant. Most of the time, the tenant will be a company and they will be responsible for all expenses related to the property. The typical lease terms are from 10 to 25 years, renewable. If you have KFC, FedEx, or Ford as tenants, you’ve hit the jackpot.
For those with more ample funds to invest, middle-class apartments are synonymous with security and prosperity. These apartments are often in their best conditions with little management required, and they attract well-behaved highly-educated tenants, which is a landlord’s dream come true.
To learn about the best types of property investment opportunities, contact us at R.H. Blanchard today.