3 Types of Rental Property Investments for New Investors

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. New investors can make better choices by discovering the best types of property investments in the rental market.

Single-Family Units

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.

Condos & Apartments

For those with more ample funds to invest, condos & apartments are synonymous with security and prosperity. These types of properties are often in their best conditions with little management required, and they attract well-behaved highly-educated tenants/vacation-renters, which is a landlord’s dream come true.

Knowing which types of rental properties yield the best result helps investors make better investment choices in the real estate market. If you plan to purchase on a mortgage, do careful calculations before you commit to ensure you don’t get caught in a cash shortage in the process.

Key West Investment Condos

This 1,100 sq ft, 2 bedroom, 2 1/2 bath condo is centrally located to all the shopping in New Town. The kitchen has a pass-through to the large living room with sliding glass doors to an open balcony. The master bedroom is en suite and has double closets. Other features include new central air conditioning installed in 2019, covered off-street parking for 2 cars, freshly painted kitchen cabinets, and 2 walk-in closets in the guest bedroom. The large community pool is perfect for swimming laps with plenty of deck space for lounging, and for the kids there's a playground.

$314,000 Active

3314 Northside Drive 44 KEY WEST, Florida

2 Beds 3 Baths 1,100 SqFt

Stylish and elegant town home located at the prestigious Casa Caselles. First floor has covered parking, an outdoor courtyard area overlooking a private heated pool. The spacious foyer is warm and welcoming. The second level of the this townhome is the main living area. An open concept with special attention to the large island located in the kitchen. Custom cabinetry throughout. The top floor has two bedrooms with attached bathrooms. Each room has a walk in closet. The eight balconies offer an abundance of light throughout the unit. Perfect unit to lock and leave or enjoy year around.

$1,480,000 Active

1616 Atlantic Boulevard 20 KEY WEST, Florida

2 Beds 3 Baths 2,016 SqFt 0.030 Acres

You'll be close to everything, but feel 'worlds away' in this gorgeous one-level top-floor condo right in the heart of Islamorada! Enjoy nightly sunsets and expansive views from practically every room. The condo is beautifully updated and is freshly painted throughout. Smooth ceilings and impact resistant windows. Travertine floors in the living areas extend out to the huge screened lanai overlooking the pool, mangroves and water. Sandpebbles is a small, private complex - only 16 units. It's one of the only pet friendly condominiums in Islamorada! There's storage onsite for boats and trailers and it's very close to Islamorada Marina where you can dry dock your boat. You'll save hundreds of thousands over similar condos with onsite dockage. Excellent vacation rental 30 day min. See videos!

$530,000 Active

80450 Overseas Highway 403 ISLAMORADA, Florida

2 Beds 2 Baths 1,300 SqFt

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