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

Ocean Harbour is paradise found! Enjoy this tastefully updated unit with endless panoramic views of the turquoise Atlantic. Steps away from the ocean and your deeded 50' boat slip. This open floor plan with three spacious bedrooms and a dream kitchen with custom cabinetry and new appliances. Enjoy resort-style living with an oceanfront pool and hot tub, tennis courts w/pickleball lines, tiki huts, ice machines, boat ramp, clubhouse with gym and all offered within the private and gated community of Ocean Harbour! This is the one you have been waiting for!

$1,600,000 Active

87851 Old Highway P31 ISLAMORADA, Florida

3 Beds 2 Baths 1,896 SqFt

$539,000 Active

1101 Ocean Drive W 24 KEY COLONY, Florida

2 Beds 2 Baths 990 SqFt

First floor Shipyard condominium features 2 bedrooms and 1 bath. Updated kitchen with stainless steel appliances, granite countertop, and updated bath with shower. Large rear deck provides plenty of room for outdoor living and provides easy access to the community pool that is located close by. Convenient, assigned parking space, just steps from the front door. Impact windows and French door. This property has the special Truman Annex / Shipyard transient rental license.

$898,900 Active

620 Thomas Street 186 KEY WEST, Florida

2 Beds 1 Baths 610 SqFt

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