The Type of Property Is a Huge Consideration
What Makes Sense: Commercial, Multi Family or Single Family Properties?
Synopsis: Doing your homework to determine what type of real estate you want to own is important because it can be difficult to manage and understand all three property types. Watch the interview with best selling author, real estate economist and talk show host of the Real Wealth show Kathy Fettke.
Success in one type of investing doesn’t guarantee success in another. You must become an expert in whichever path you choose. Being an expert is not becoming a Rhodes scholar, but a well-educated investor. Selecting the type of real estate needs to reflect your disposition towards the work that may be involved if you’re not outsourcing the work to a property management company.
Every investment has a market cycle. Nothing goes up forever. As they say, what goes up must come down. If you didn’t believe in that axiom, you do now after the market meltdown of 2008. But there may be strategies that can insulate you from a market collapse. Again, consult a real estate professional before moving forward with any purchase of property.
The American dream is alive and well. That’s why single-family homes are much easier to both sell and rent than multi-family properties. In financial terms, they have greater liquidity than apartments and commercial buildings. Most real estate investors who own several single-family homes are homeowners themselves, so it’s not a great leap into the abyss to start buying single-family homes.
Single family homes can be sold retail to the public. And if your home is well within affordability for the average buyer in the area, then you should have more than enough demand when it comes time to sell or rent.
However, you most likely would have to sell a multi-family or commercial property to another investor. Do investors like paying full price? Of course not. Investors like deals, so you’d have to strike a pretty good deal in order to sell. The real trick here is to be the investor who negotiates the best deal as a buyer, so that when you sell you can have some built in wiggle room if you are negotiating with a shark.
This press release contains selected content from Kathy Fettke’s Amazon Bestseller Retire Rich with Rentals.