5 Great Investment Properties For Beginners

5 Great Investment Properties For Beginners

The world of real estate investing offers you many choices and sometimes it can be overwhelming. Just realize that everyone has a certain preference when it comes to investments, but I’m going to show you some lower cost and lower risk ways to get into real-estate investing:

 

  1. 1,000-1,500SQFT single family brick rancher

  • Purchase smaller units in large, well-known developments near the city

  • Stay close to jobs and employment

  • Don’t buy properties that have major upgrades

Brick ranchers are one of the few house designs that have withstood the test of time and very rarely fall into and out of style. Due to there age they also tend to be located near city centers.

  • Buy, hire a property manager, and sit back for some serious passive income

  • Purchase a property that needs work and do some light renovation

 

2. Small-Multi Family (Duplex, Triplex, Quadplex)

Duplexes are one of the most stable, low-risk, and highest performing real-estate assets you can own.

  • Purchase and rent out both sides

  • Live in one unit and rent out the other side (often times called “House Hacking”)

  • As you live in one unit, slowly renovate and increase rents

 

The best thing about multi-family is you will almost always have income coming in. If one person moves out, you have the income coming if the other person stops paying.

 

3. The Live-In Flip

Before

After

The live in flip is simple. Buy a dilapidated house in a nice neighborhood with a government subsidized loan, renovate it as you live in it, and sell (or rent it out) a few years down the line.

  • Key point is that you need to find a GREAT deal (Old real-estate saying: “the money is made when you buy”)

  • Drive around neighborhoods, find them in the tax record, and call them

  • Send out mailers

  • Prospect absentee owners

  • Hang some we buy houses signs out

A “true” house flip is completely different from a buy and hold:

  1. If you plan on flipping right after, you need to make the home most appealing to a retail buyer. ADD granite counters, subway tile, free standing sink in the master bathroom, etc.

  2. If you plan on buying and hold, DON’T ADD nice counters and amenities because you will be paying for nice things that tenants will likely ruin over years of abuse.

 

4. College Investment Property

Image result for frat house

College investment properties are the favorites of many investors:

  • They typically have high returns

  • Colleges still have a positive outlook and demand will likely continue

  • Bad thing is that college kids can be destructive and the turnover is high

 

  1. Above all else, look in areas within WALKING DISTANCE to the university and near bars. College students will pay EXORBITANT prices to have those to features and will pay HUGE rents for houses that are in terrible shape.

 

5. Hospital Investment Properties

 

The health care profession is one of the most high-paying and stable sectors imaginable. Nothing is more satisfying then knowing your tenant is a nurse or in a related field.

  • Many times areas near hospitals have sprawling residential neighborhoods near them because developers had the same idea as you do

  • The tenant quality is going to be unmatched and demand continuous

  • Areas near hospitals are often up-and-coming and great opportunties for flips

Image result for hospital

 

Bonus Section FINANCING: 

 

6. Seller Finance

 

These aren’t more so investment properties but a great way for a beginner investor to obtain a property when you don’t have great credit.

 

  • Obtain a list of all people in your area that own their properties with no mortgage (Sometimes called a “high equity owner”)

  • High equity owners tend to be older people, inherited property owners, out-of-state owners

  • Find a homeowner that will give you a mortgage for the house without a bank

  • Instead of sending a check to a bank, you will send a check to the previous owner of the house

Many times you will be required to pay over market value, but if the property cash-flows and has a decent rate it makes sense.

 

7. Investor/Portfolio loans

There are many unique real estate investing loans that you can obtain if you have things like poor credit and/or 1099 income.

Portfolio loans can be obtained and they allow you to finance properties based off of the potential income and financials of a property


ABOUT THE AUTHOR

Teddy Smith

Real-estate agent in Wilmington, NC that is known for You-tubing, blogging, and teaching people how-to cold-call. Helping millennials find homes and surf spots.


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Phone: 970-312-7337
Dated: July 2nd 2019
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