Whether you are new to investing in real estate, or you have been investing in real estate for a long time, you may be wondering… What are the best income-generating properties on the market right now? It makes sense that you want to know the best type of property to put your money into.
Best Income-Generating Properties on the Market
Multi-Family Properties
Multi-family properties are a great investment opportunity if you want to manage more than one tenant at a time. Multi-family homes are low-risk but still have strong momentum. There are many pros to investing in a multi-family home including that they are often easier to get financing for, and they have many tax benefits including being able to deduct maintenance and operation costs.
Single-Family Properties
If you aren’t looking to manage a lot of tenants at once, a single-family home may be a better investment route. Single-family homes often rent for more than multi-family homes. These types of properties are a great option for first-time investors since the tenant is responsible for all of the utilities, and there is only one tenant to manage.
Studio Apartments
Studio apartments are another great option for making passive income on a property. They are often in high demand since people prefer the privacy of them. According to MashVisor, studio apartments make up to 1.5% more in rental income than one-bedroom or two-bedroom apartments. They make for a better return on your investment since the number of potential tenants for studio apartments is expected to stay the same, if not increase.
Commercial Real Estate
Commercial real estate spaces can be great investment opportunities if you know what to look for when buying a commercial building. While these are great investments for a more skilled investor, commercial properties can bring a 6% to 12% annual return on investment. Commercial properties are great opportunities because they allow for easy cash flow, are great for equity appreciation, and can give you tax advantages.
Triple Net Lease Properties
Triple net lease properties, also called NNN properties, make for great investments since they are fixed-income, low-risk, and long-term investments. NNN properties are also great because the tenant covers 100% of the property expenses such as insurance, maintenance, and taxes. NNN properties are often leased for around 10 years, so they are great long-term investments.
Ready to Start Investing in Real Estate?
If you are ready to start investing in a real estate property, talk to our team at Foxen Realty. We’ll help you with everything you need to know to get started in real estate investments. Contact us today to get started or with any questions you may have.