There’s no question that real estate can be an incredible investment and is not only a major part of the middle class dream but one of the most common and accessible ways for individuals to come from a poor, working class, or middle class background and earn wealth for themselves and to pass on to their families. This is why the idea of commercial investment properties is so appealing…especially when you see the sheer amount of options that are available.
Basement & Garage Apartments
This is one of the most basic options when it comes to turning basic real estate into an investment property and is often popular because it is easy to do, and a person can start testing out the landlord role from their own residential property. This is a first step to earning some cash, but it is a far different thing than real investment property for commercial gain.
Single Family Houses For Rent
Some real estate investors love single family homes, some don’t seem nearly as interested or impressed. Whatever your feelings, a single-family house is a great starter option as a commercial property. Find a good deal on a house or buy a house in a neighborhood or city that appears ready to thrive over time and rent it out to a family. Benefits include being very easy to manage, often even with a few properties, likely stable renters with families coming in, and that cash flow keeps paying for the taxes, mortgage payments, and returns some on the side as you continue to build equity. They are also always in demand making this a great way to start with commercial real estate investing.
Apartment complexes are the next step up and actually what most people think about when investing in rental properties. While this makes a lot of sense and is a great way to maximize return from a smaller area of land, it’s really important to note that there are truly massive differences between smaller complexes and larger ones, not to mention a wide variety of other details and influences.
Apartment complexes can vary greatly from basic small town and small city apartment complexes ranging from as few as 4-6 units to dozens or even hundreds of apartments in one complex. Size makes a major difference and may also determine whether or not you want to hire a property manager or on-site handymen to handle and all issues that might pop up.
In addition to size, there are other variants that come with apartments as rental properties including income restrictions, low income housing that gets partial funding from the state, or even luxury apartments. All those factors plus location makes a huge difference in price, rent, profit potential, and more.
Just a few apartment types include:
– Small apartment complexes
– Large apartment complexes
– Income restriction housing
– Luxury apartments and more!
Seasonal Rental Properties
Seasonal rental properties offer some serious options, as well as a variety of opportunities. These can vary in appearance from homes to condos to cabins to bungalows depending on the location, the area, and the reason that seasonal rentals might be in high demand.
Just a small example of some of the rental properties that might be viable during a particular season based on an area include:
– Cabins during ski season
– Cabins/condos during fishing season
– Beach bungalows during tourist season
These are just a few of the potential options available, and the tourism demand means that rates you charge can be very high on a night by night basis, but that also means open spaces during non-demand seasons. However, being creative in this regard also opens up a world of opportunities.
Warehouse Rental Properties
Commercial investment property options can mean just that: commercial. Warehouses are needed in a wide variety of different businesses and if you advance that to “warehouse-like properties” then the number of options grows. There are businesses that make their own for sure, but if a business needs a lot of space and open commercial businesses to expand they are willing to pay the price to get the space they need.
These are relatively simple buildings to create, the key is having that crucial piece of accessible land with all necessary utilities and zoning. If you have that, there are plenty of options available.
Commercial Office Building Properties
Much more expensive and definitely higher up the list, these buildings cost a lot to build, but offer a stunning amount of opportunity. With the potential to house thousands or even tens of thousands of workers at once the rent numbers are going to be incredible whether from one company needing all that space or from dozens renting by half a floor and creating a steady flow of payments from multiple sources.
These high quality commercial office buildings definitely shoot up numbers to millions, tens of millions, or even hundreds of millions but will require real estate lawyers for rental contracts, money to run day to day operations, and a lot of management but the high-end potential is hard to match with virtually any other type of real estate. You can contact Realtors in Cincinnati Ohio to get a list of what is available.
Creative Real Estate Options
There are many other commercial properties that are viable options for investment that are commercial in nature but don’t involve dealing with people as much or having tenants. This takes a little bit of thinking outside of the box but many a real estate investment fortune has been made from creative options like private parking garages, outdoor storage units, or even indoor temperature-controlled storage.
All of these tend to be high initial cost, very low maintenance, and create a steady stream of income that gives more and more profit over the course of time.
So what type of real estate is right for your next commercial investment venture from 3cre.com? That’s hard to say and is going to depend on a wide variety of issues. There are many different options here, and by doing your research, looking at areas of interest, and understanding your income and investment options you’ll be able to create the right balance for you.