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
$875,000
Active
206 Southard Street 4 KEY WEST, Florida
2 Beds 1 Baths 646 SqFt
$575,000
Active
87465 Old Highway 106 ISLAMORADA, Florida
2 Beds 2 Baths 976 SqFt
$595,000
Active
10877 Overseas Highway 4 MARATHON, Florida
1 Baths 503 SqFt
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Newest Key West Commercial Properties on the Market
$4,083.33
Active
2730 Roosevelt Boulevard N KEY WEST, Florida
1 Baths 178,707 SqFt
$600,000
Active
5800 Overseas Highway 21 MARATHON, Florida
1 Baths 1,860 SqFt