If you want to invest in Harper Woods, there are many property types you can consider. Investment properties are a popular choice in some of the highest performing portfolios. In our latest blog, we will discuss the many property types you can find in Harper Woods.
What is the best type of investment property? The answer to that question, of course, depends on the specific, individual situation of each investor who is asking it. The many variables that affect the answer include knowledge of the market, short- and long-term goals, and current financial situation. Some real estate investors focus on appreciation and long-term profits while others have an investment strategy revolving around turning a profit as quickly as possible. Whatever your investment strategy, it’s a good idea to be aware of the 5 types of investment properties available in Harper Woods.
1. Vacant Land
If it fits well with your business model, vacant land can be one of the best of the investment properties available in Harper Woods. Vacant land can be purchased at low prices, and the running costs of ownership are extremely low, usually including little more than property taxes. But the catch with investing in vacant land is that making a profit requires a thorough knowledge of the local market and an ability to forecast development prospects.
2. Traditional Rentals
Traditional rentals are perhaps the best investment properties available in Harper Woods for the long-term approach. They can produce a good passive income, but it takes time. In the beginning, your rental income will go toward property taxes, mortgage payments, maintenance expenses, and (perhaps) property-management costs. But in the long term, after the mortgage is paid off, most of your rental income will be profit.
3. Fix-and-Flip Properties
Fix-and-flip properties are considered by many investors to be the best type of investment property because the profit potential is much greater in the short run. But, as always, where the potential ROI is higher, so is the risk.
Buying properties in bad shape and then repairing and renovating them for quick resale can work well. But the repair costs can sometimes spiral out of control and eat up the profits. It takes, then, a good measure of knowledge and experience, as well as enough operating capital for the repairs/renovations, for success with this strategy.
4. Single-Tenant Net-Leased Properties
Also known as triple-net properties, single-tenant net-leased properties are generally buildings with a single tenant on a long-term lease structure (generally extending several years) who is also responsible for covering all the expenses. Yes, the fact that there is only one tenant does present some risk. But if you have a strong tenant like FedEx or Walgreens locked into, say, a 20-year lease, this can be a safe and profitable one of the investment properties available in Harper Woods. The one thing to keep in mind is that you need a strategy in place for what you will do with the property on the expiration of the tenant’s lease.
5. Vacation Rentals
Another possibility is vacation rentals, which many investors are now seeking to include in their real estate investment portfolio. The chief benefits of vacation rentals are the significant tax breaks and the fact that rents are significantly higher. The major drawback is that rental periods are fairly short-term, and so you’ll have to deal with frequent vacancies. And you need to keep in mind as well that vacation rentals must be in a desirable location with the necessary nearby attractions.
So now that you know about the types of investment properties available in Harper Woods, you have some decisions to make. Based on your finances, goals, and chosen real estate investment strategy, you’ll have to determine which type (or types) of investment property is the best fit for your particular business model. That’s exactly where we can provide some expert real estate investing help.
To discover more, send us a message or call us today at (313) 246-4551 to see how we can help!