When you decide to invest in New Orleans real estate, there are many options to choose from. Each type of property will perform a little bit differently and require a different level of commitment. What works for one investor might not work for another. The goal is to find what works for you! In our latest post, we will discuss many types of real estate so you can determine what type of property is right for your portfolio in New Orleans!
Congratulations on deciding to invest in New Orleans real estate! Buying and selling homes has created more millionaires than any other method. People will always need housing! Continue reading to learn about the different types of real estate available to you.
Land is often overlooked. There are many ways to be successful through land investment that you may not have considered. You can buy and hold in a developing area and sell when the time is right. You could buy a large parcel of land, subdivide it, and then sell the lots individually for a profit. You can also buy and develop the land yourself, turning a patch of dirt into a profitable piece of real estate. Some of the best investors see potential in a piece of raw land and capitalize on it!
Landlords procure some of the highest returns through single-family homes. Tenants usually reside in houses longer than they do apartments. Higher tenant retention means more money in the bank for you. Single-family homes are a popular investment choice for many people.
It can be a challenge to get the necessary funding when you purchase a property specifically for investment. Plenty of investors begin by buying a multi-family property and living in one of the units. When you buy a property that is 4 units or smaller, you can still use an FHA loan. You can promptly purchase a 4-plex for 3.5% down and begin collecting rental income straightaway. You will be able to rent out the whole building once you have lived in the unit for two years.
An apartment building is usually best for investors with some experience. There is more maintenance and turnover to worry about with multiple tenants. You will need to keep them content while watching your overhead costs.
Some investors prefer to own commercial properties. Businesses tend to move less frequently than home renters. The main concern would be the business staying open for a good amount of time. Be prepared for the volatility of a commercial building — businesses open and close daily.
This niche market is very rewarding for some investors. Buying and flipping/renting mobile homes to long-term tenants can be a great source of income, but few people see the profits in owning a mobile home. This property type usually has a smaller market, so there is less competition when a great deal comes along.
When you invest in a REIT or Real Estate Investment Trust, you pool your money with many others in the hopes of achieving profits. REIT’s can be very profitable and require little to no work from you. It is a great choice for investors looking to build wealth using a hands-off approach.
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