There Are Different Types Of Real Estate, And Different Ways To Invest In Them. Which Way Is Best Is For You To Decide, According To Your Particular Needs. Here Are A Few Ways To Consider, With Their Advantages And Disadvantages. 1. Rental Houses. Advantages: One Of The Easier Ways To Get Started, And Good Long Term Return On Investment. Disadvantages: Being A Landlord Isn't Much Fun, And You Typically Wait A Long Time For The Big Pay-off. 2. Rent-to-own Houses. Advantages: When You Buy, Then Sell On A Rent-to-own Arrangement, You Get Higher Rent, And The Buyer Is Usually Responsible For Maintenance. Disadvantages: The Bookkeeping Is Tricky, And Most Tenants Don't Complete The Purchase (this Can Be An Advantage Too, But It Does Mean More Work For You). 3. Low Income Rentals. Advantages: The Same As With Any Rentals, But With Higher Cash Flow. Disadvantages: The Same As With Other Rentals, But With More Repairs And Tenant Problems. 4. Fixer-uppers. Advantages: A Quick Return On Your Investment, And It Can Be More Creative Work. Disadvantages: Higher Risk (many Unpredictables) And You Get Taxed Heavily On The Gain. 5. Buy For Cash, Sell For Terms. Advantages: You Get A High Rate Of Return By Paying Cash To Get A Good Price, And Selling On Easy Terms To Get A High Price AND High Interest. Disadvantages: You Tie Up Your Capital For A Long Time. 6. Buy Land, Split It And Sell It. Advantages: It Is Simpler Than Most Real Estate Investments, With The Possibility Of Great Profits. Disadvantages: It Can Take A Long Time, And You Have Expenses, But No Cash Flow While You Wait. 7. Boarding Houses. Advantages: You Can Get A Lot More Cash Flow Renting A House By The Room, Especially In A College Town. Disadvantages: You Can Get A Lot More Headaches Renting A House By The Room, Especially In A College Town. 8. Commercial Real Estate. Advantages: Long Term Triple-net Leases Mean Little Management And High Returns. Disadvantages: Tough Market To Break Into, And You Can Lose Income On Vacant Storefronts For A Year At A Time. 9. Buy, Live In It, And Sell. Advantages: The New Tax Law Means You Can Fix It Up, And Sell For A Big Tax-free Profit After Two Years, Then Start The Process Again. Disadvantages: You Have To Move A Lot. 10. Speculation. Advantages: Buying In The Path Of Growth And Holding Until Values Rise Can Yield Large Profits, Especially If You Buy Low To Start. Disadvantages: Prices Aren't That Predictable, You Have Expenses With No Income While You're Waiting, And Transaction Costs Can Eat Much Of The Profits.
