It’s widely acknowledged that land is the most valuable resource on this Earth, as no one’s making more of it. In fact, there’s going to be less land as the water starts to reclaim the coasts which means purchasing land is one of the most intelligent ways to invest your money. While there is a slew of reasons to become a landlord, it’s hard to know where to start. Do you grab a mortgage, pick out a single family home and aim for the stars? Or is there more of a method of investing in real estate? How do you puzzle through the formula to start planning out your next moves?
Understanding the Types of Rental Property Investment
You can find real estate in a variety of forms. There’s single family homes, multi-family residential, commercial real estate, and so much more. While there are minor differences in opinion, multi-family residential properties are often the most lucrative properties you can invest in to receive passive income. If you’re looking for a way to invest with several investors there are options like real estate crowdfunding and REITs. You can even access the online platform called Fundraise to simplify the process and find the money and then the following ROI. You can invest in Fundraise for as little as $1000. Investing in other forms of real estate is easier, but also far less lucrative. If you can afford it, you’ll see higher returns on multi-family residential rentals.
Location, Location, Etc.
It’s possible to be a local real estate investor or a long-distance investor. You can hire a rental property management company, like DNS Property Management, in the vicinity of your property and we’ll care for it and handle all of the duties that would normally be required of a landlord. If you’re not interested in self-managing the property, which is a huge task for a multi-family residential property, there’s no need for you to live in the state. Although it could make it more convenient to visit, observe, and keep an eye on the current real estate market so that you can adjust prices according to the local economy. If you invest long distance you can choose flush markets that might yield a higher ROI.
The land will most likely jump around on the price scale which is something you’ll be fairly immune to as an investor in multi-family residential properties. The appreciation and depreciation of homes will only affect you in the sense that some people might be renting more during that time, or less during that time depending on housing bubbles and market crashes.
Self Management vs. Property Management
When there are more people involved, it inevitably means there’ll be more variables in an equation. That means a multi-family residential property will have more toilets flooding at 3 am and more people trying to skinny dip in the pool. Having to deal with that while managing a complex real estate investment portfolio probably isn’t your top priority. Investing in a property management company is probably your best bet to avoid any of those tiny problems adding up in your inbox instead of ours.
We proudly provide the highest quality property management services in the Broward County area. Reach out to us to discuss rental property management options for your multi-residential family property now.