Type of Investment Properties

There are many types of real estate related income properties such as industrial, commercial, agricultural land, and residential. For the sake of time and interest I will be focusing only on residential income property.

The subject of residential income properties is vast and heavily covered by many types of people from many backgrounds. Every real estate investor has a different view, experience, opinion, impression, outlook of how, what, when, and where to buy. Again for the sake of time and interest I will be narrowing this subject matter to a type of real estate that I’ll discuss in a moment.

The goal of this website is to assist and simplify for new and seasoned real estate investors the process of finding, acquiring, and maintaining ‘out of area’ rental properties. There are not many obstacles that will stop a person faster from buying a piece of property than a complicated, difficult, or tedious process. I believe in “Keeping it simple” and carrying this belief on to real estate investments has been challenging to say the least. There are literally hundreds of thousands of properties to select from so how does someone select the right one?

What do we want?

1. Selection - Easy to find and large inventory to choose from
2. A good deal - You want a good value
3. Higher Potential for increase in value/appreciation
4. Easy negotiation process
5. Lower maintenance costs
6. Rent ready - no fixers - less vacany time
7. Easy to rent - renters want to move in now
   

So what kind of property fits these requirements?

SFR - Single Family Residential, Condo, and Multiple Units, all these type of properties have potential in all the requirements above from one degree to another, however, single family residential wins out because it attracts a broader base of people, followed by condos and then multi-units. SFR’s perform better in terms of appreciation and their values are not solely dependant on their income alone. Also there are far more SFR’s followed by condos to select from.

Great deals can be found but the needed footwork, research and negotiating to find them is exhaustive. Most under market deals are found in the “resale” real estate market (used homes). I am a student of Real Estate Guru’s and I’ve bought into their programs and a couple of them encourage making offers on 100 properties, negotiate the ten most serious counter offers and seal the deal on one to three of the remaining. This for most is too time consuming and tedious. Instead of trying to find “The Steal” why not settle for a good buy that has great appreciation potential, this is simpler to do and takes less energy to find. Remember this is NOT a “Get rich quick” scheme.

What kind of property has a higher than average appreciation potential? With country, state, and local markets being equal, new housing will in most cases outpace their resale/used counterparts. New houses are most importantly “NEW” and they offer the latest in design, features, and community styles. With the rise in necessity of technology newer homes offer more in terms of internet, communication, entertainment, and household features making them more desirable to potential buyers thus commanding higher prices in the future compared to older homes. The same reasons also apply to renters and their desires.

Since new homes are “new” they will need very little to no maintenance at the beginning all the inner workings of the house are under the manufacturer’s warranty. There is very little to no preparations needed to get the house ready for a renter. If you work with the right agent and they know the type of buyer you are they will locate and negotiate a home that will be “Rent Ready” meaning that window coverings, refrigerator, washer & dryer, garage door openers, and landscaping will all be put in place before the close of escrow. Having all of this done before the close of escrow means less vacancy time and more rent money in your pocket sooner. Of course buying a resale home is still okay, we can refer you to the best agents who have the skill and know how to locate the right rental property for you.