Income Properties Best Investments
Here are some readily available options for you if you are looking to invest into some properties.
Be sure to have the appropriate permit for this type of investment. That requires, amongst other things, a separate entrance. You can get creative with the space and have a small kitchen, including convection oven and glass induction stove-tops. This is a great way to obtain income and pay off your mortgage. You will need to be comfortable with the person you rent to, as you will be able to hear each other occasionally, and will have some shared space, such as driveways.
These are primarily in popular locations – such as Miami and Las Vegas. If you prefer to vacation in one of these places, you can purchase a condo-hotel, which will be used by the main hotel as a hotel room except for when you reserve it, and you may have to pay an associated cleaning fee at this time. If the hotel is popular and somewhere you would typically stay, you can make fairly good return on investment while knowing you have a place to vacation yourself. There is typically a locked locker in the suite which belongs to you where you can store clothing, etc.
These are fully furnished with many amenities and demand a fairly high rental amount. The upkeep can become somewhat difficult and a property management company can assist in handling your tenancies and cleaning requirements.
You will need to be able to purchase the home and make renovations quickly to ensure you do not get caught in a down market. You will want to work with a project manager who can manage the required tradespeople, and you will want to work with people who can get good discounts on the products you will need for your renovation – such as new flooring, paint, kitchen counter tops, bathroom vanities and toilets. You will also want to work with a stager as this will increase your chance of selling the home.
This is different than a condo-hotel as you will have to manage the rentals yourself or contract that to a property rental company. You will also have to vet the potential clients and will have to make emergency repairs as necessary. As with student housing, we recommend you have a handyman readily available to assist when required.
The right choice for you may be a combination of the above investments or you may stick with one type that works best. You should consult with individuals who own investment properties similar to the ones you are looking at to find out their opinion on their investment, the benefits and drawbacks, and what property managers, stagers, contractors, or handymen they recommend.