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Don’t Invest Until You read 5 Real Estate Niches You Can Invest In, or You Risk Financial Ruin

Posted by Azizi Realtors on April 26, 2021
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Investing is exciting – but it can also be nerve-wracking

Real estate is not a “Get Rich Quick Scheme.”

In this article, you will learn different Real estate vehicles and strategies for using those vehicles.

“Very narrow areas of expertise can be very productive. Develop your profile. Develop your niche.” —Leigh Steinberg

1.   Single-family homes

It’s a “normal home” with one bedroom, one bathroom, kitchen and a few rooms. Single-family homes are built on their own piece of land.

 The good news is that they’re easy to finance, rent and sell. And the bad news is that it won’t provide you with enough cash flow.

Pros of Single-Family Homes

·        Fewer utility bills – in small-family homes, tenants pay for their bills, including electricity, water and sewerage. (The owner is still liable for land rates, insurance, repairs and maintenance.)

·        Easy to finance– Banks and other financial institutions are always willing to give mortgages to build single-family homes.

·        Attracts stable tenants – tenants who rent Single-family homes stay longer because they are ready to settle.

Cons of Singl- Family Homes.

·        Expensive– After tenants vacate, the cost of rehabilitating the house I usually high. Mostly, this is because tenants stay for long and repairs are not done at their primary stages. Something which would have coasted a small amount of money  consumes more because it’s already late

·        Slow to scale– small-family homes are easy to construct and sell, but they have a small cash flow.

·        High cost per unit– Every unit is independent compared to apartments units which share the cost of installing electricity, water sewerage and other amenities

Now, let’s compare that with apartments.

2.   Apartments

Apartments are building with more than one unit. There are two types; Small and large apartments.

·        Small apartments-This is a building made up of between 10- 50 units. Small apartments provide positive cash flow to the investor.

·        Large Apartments-These are large complexes with 50 units and above. They’re located in big towns and cities. 

3.   Commercial real estate

It’s property leased to businesses and used exclusively for business-related activities only. They include restaurants, advocates offices, banks and hundreds of others.

4.   Condos

Condos are similar to apartments, but the units in that complex are individually owned. The owner of the unit can decide to live there or rent it out. The unit owner legally owns it, but the roof, exterior walls, foundation and shared facilities are owned by the entire community and managed by a Condo Management Company.

5.   Raw land

It’s a bare land on its own. Raw land can be leased or rented.

Wrapping it  up

This article aimed to educate you on the typical real estate properties you can invest in.

“Even a great investment, if purchased in the area, can turn into a horrific experience” BrudonTurner.

Find out this in our next article on how to choose a location

And that is why; at Azizi realtors, our goal is to help investors who want to be successful in their real estate journey

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