One of the best things about investing in income properties is that there are so many different types, and you can customize your investment approach according to your comfort with risk, finances, desired time commitment, and other factors. If you are new to the world of investing in real estate, these income properties are a good place to start.
- Mobile Homes- Many new real estate investors start with mobile homes because of their low upfront cost. In some cases, you can purchase these income properties for less than $100,000. Because your mortgage payment on one of these properties will be so low, it will be easier to maintain positive cash flow on a monthly basis.
- Multi-Family Homes- Multi-family homes, like duplexes, are hard to find, but they can provide a great return. This is because they do not cost significantly more than single-family homes, but you can fill them with two tenants instead of one, creating more long-term income potential.
- Detached Single-Family Homes – Many real estate investors specialize in single-family homes, and this type of property can be a good place to start. But if you plan on buying one of these properties, you have to be careful about how much you pay. Try to find single-family homes in good areas but at a lower price than market. You may have to do some minor upgrades and renovations, but starting off with a lower sales price is the best way to ensure a positive investment.