Wednesday, November 18, 2020

Types of Properties to Buy That Will Be a Successful Long-Term Investment




Real estate investments are good for business because they appreciate and are less risky. However, before you invest, you need to know the best properties to invest in. Below is a list of properties for first-time buyers and those looking to expand their portfolio.

Triple Net Lease


This is a type of commercial real estate investment whereby the tenant agrees to pay the building insurance, property taxes, mortgage repayments, and other property expenses. It’s also called NNN. Since the tenant takes on the task of handling major expenses, you can adjust the rent to make it more affordable.

NNN is a great long-term investment because it doesn’t have many risks; your tenants will settle most of the bills. Your work is to manage the property and collect rent.

Another advantage of NNN is it provides a stable long-term income source. Big franchises prefer NNN properties because the lease is more affordable. Therefore, you’re going to get tenants with stable finances.

Single Family Homes


A single-family home is a standalone property with a backyard. It’s the preferred home for most young families because it offers flexibility and privacy. 

Unlike apartments, homeowners can modify their single home, for example, they can add a pool in the backyard. Single-family homes are private because they don’t share walls with other buildings.




A single-family home can be a great long-term investment because you can buy and hold it for 10-years before selling it for a profit. 

During those 10 years, you have the option of renting out the property. You can use the rent to pay investment property loans, taxes, and other expenses.

Multi-Family Homes


A multi-family home has more than one family living in it. Small multi-family homes have 4 units, meaning you can collect rent from 4 different tenants. This type of investment is great if you’re thinking about venturing into commercial real estate.

If you purchase the property in an area with high demand, you’ll always have tenants. That means your cash flow will be steady. Multi-family homes also provide a significant return on investment because you’re getting rent from multiple tenants.

Apartments


An apartment is a high rise building that has more than 5 units. Most apartments are found in big cities because the demand for housing is high in such areas. An apartment can make you a lot of money because it has multiple units.

If you are ready to make some major investments, consider investing in one or some of the properties above. They will be sure to pay off in the long run.



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