When you want to invest in residential rental property, you have many options. We’re often asked about the best type of property to buy, but it really depends on your goals and what you’re looking for. You can choose a condo, a multi-family property, or a single family home. Today, we’re talking about your options as an investor.
Property Management Contra Costa County: Condo Associations
A condo is one type of investment, and the thing you have to remember about these properties is that they almost always come with an HOA, or a homeowner’s association. You can look at the HOA as your partner, and you’ll be paying a little extra. For the $200, $300, or even $500 per month that you pay, you have someone taking care of the elevators, the swimming pool, and the common areas. That’s a good thing, because it attracts excellent tenants and you can usually charge a high rent. But, there’s not a lot of control for you when you buy a condo. The HOA may have assessments and a lot of rules and regulations. There can be a lot of unknowns. Personally, I don’t like unknowns when I’m investing in real estate, but condos work great for other investors.
Property Management Walnut Creek: Multi-family Properties
You can also consider investing in a multi-family property, such as a fourplex. When you buy a fourplex, you can still get a residential bank loan. This is possible for any property that’s four units or less. The beauty of this type of investment is that if you ever have a vacant unit, you aren’t losing all the money that month from rent. Three other doors are generating income until you solve the vacancy.
Property Management Contra Costa County: Single Family Homes
Single family homes are also an option. These are usually three bedrooms and two bathrooms, and you can find them in all sorts of neighborhoods. Most investors and tenants find these to be the most desirable properties. There are yards and garages and more space. You’re likely to get better rents. However, they cost more money to buy.
The type of investment you choose is a personal decision, and it depends on what you can afford and what you want.
We’d love to talk to you about your options and the pros and cons associated with all those types of properties. If you have any questions, please contact us at Stokley Properties.