WLCCI

What Kind of Property is Best for Investment

The property one chooses to buy should be determined by ones short and long term goals. Are you looking for income property, meaning property that will produce a residual income over an extended period of time, short term investment property, property that is turned over as quickly as possible with maximum profits, property that realizes its greatest gain down the line, a nice home to live in or any combination of all these options. These questions should first be answered before you set out on your property quest.

INCOME PROPERTY

There’s good news and bad news here. the good news is there’s good money to be made in rental property. The bad news is you have to deal with renters. I’m being fictitious.

Ninety percent of all problems that occur with bad renters can be eliminated with common sense and a good screening process that should be religiously adhered to. Do your work up front and save yourself a bucket of trouble later on. Lower your defenses and I guarantee there will be people who will take advantage of you.

All income property should be balanced out against the potential benefits, i.e. income and resale value against the challenges such as the cost of repairs and maintenance as well as the responsibilities of being a land lord.

Income properties come in all sorts of colors and flavors:

•  Apartments
•  Retail Stores
• Warehouses
• Mobil homes
• Office buildings
• Single-family homes

I could probably list 50 more but you get the point. Anything you own and somebody else rents from you for a profit would qualify.

For a new investor a single family residence represents the best investment opportunities. They are easier to buy and there’s more of them. Besides, the most flexible sellers fall into this category.

It’s also considerably easier to evaluate the investment potential of a single family residence than commercial real estate, and they are much easier to rent and keep rented. Until a person solidifies his or her position in real estate investment, it just makes good sense to minimize the risk factor. This is most easily accomplished by investing in a single family residence.