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33rd Company News

Types of Properties to Invest In

Tom Sedlack - Thursday, October 20, 2022

Investors of all walks of life flock to real estate, and for good reason. It's a relatively stable, tangible asset, and in high demand. That's why there are more than 11 million landlords across the US.

However, there are plenty of types of real estate investments to choose from. Let's talk about how to choose the right type of investment property as a new real estate investor!

Short-Term Rentals

Vacation rentals are a great way to maximize the profitability of real estate. The going rates in certain markets for Airbnbs and other short-term rentals are anywhere from $200 to $500 a night! If you buy in the right market, you can earn year-round.

For example, people flock to Florida in the winter, but they also head to Vermont or Colorado to go skiing. In certain markets in these states, you could earn $300 a night easily. With 20 nights a month, that's $6,000 per month for one unit, which is much higher than that of a long-term rental in those states!

Flippable Properties

"Fixer-upper" properties can be flipped for profit. If you're handy and can do some of the work yourself, you can maximize profits by eliminating high labor costs. If not, you just need to find the right property!

Successful property flips can return 6 figures easily. Let's say you buy a property for $80,000 in a market of $300k to $400k homes, and put $100,000 worth of renovations in. That leaves a potential profit margin of $120,000 to $220,000.

Another option with fixer-uppers is to buy, rehab, and rent it out for a long-term, stable income. Of course, you'll always have the property to resell later on, so why not make more money off of it now?

Long-Term Rentals

Long-term rentals don't have as high of a yield potential as short-term rentals, but they're arguably still a better option. First, you will have a guaranteed check every month for a specified lease duration. Second, everybody needs somewhere to live, making this the safest investment, according to millionaires.

Also, managing a long-term rental property is simply less work than managing a vacation rental. You'll need basic property maintenance and to find new tenants occasionally, but you won't have to clean up new messes every other day. If you buy in the right market, like in Minnesota, you'll attract plenty of future "climate migrants" flocking to the Great Lakes in the coming decades!

Another benefit of long-term rentals is that if you have the right property management services, you can even earn fully passive income from your investment. This means you can travel or retire and just watch the checks roll in for only a small percentage of your rental income!

Become a Real Estate Investor Today

Now that you know the best options as a new real estate investor, why wait? The sooner you invest, the sooner you can start generating passive income with the help of professional leasing management!

Stay up to date with our latest real estate tips, and don't hesitate to contact us with any questions or for help managing your new property!


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