Five Types of Single-Family Home You Should Invest
There are five types of single-family residences you can make money in, starting with no cash. Now we'll
analyze each type of property - the advantages and disadvantages of them.
1. Townhouse Single-Family Home
* Seldom need major repairs or maintenance because they usually are of recent construction.
* Command higher rents than detached single-family homes because they need less tenant work.
* Rise in value quickly when kept in good condition by the owner and tenants.
* May cost more to buy or rent than a stand-alone single-family home in the area you're investing in.
* Can be difficult to find because there often are few in an area in which you want to own rental property.
2. Apartment in a Multi-Family Building
* Can often be taken over for NO CASH and NO CLOSING COSTS when first offered on the market.
* Usually require less maintenance than detached single-family homes because they're better built and have less exposure to the elements—snow, rain, hail, sun, hurricanes, tornados, or others.
* Are simpler to manage and easier to rent because there's usually a larger need for apartments than for detached single-family homes.
* Can be put on the market, and rented by a Rental Agent for a small fee. This gives you more time for other real estate deals.
* Your rental income may be lower than for a detached single-family home in the same area.
* May be hard for you to find in heavily populated areas because of the great demand for rental apartments.
* Can take you longer to assemble a "string" of these units than a group of detached single-family homes.
3. Condo Single-Family Home Units
* Simple, easy management for you that can be done at a distance by yourself or by others.
* No land or garden care by you or your tenants—the condo asso?ciation does it all as part of your monthly fee.
* You can finance these units easily—often on zero cash, meaning you have a no-money-down deal!
* Are usually easy to sell, if you want to take a profit on your investment and buy other, more attractive income property.
* You can often buy older units at low prices if there is new condo construction in the area of your property.
* You may find it hard to locate a suitable condo in the area in which you want lo run your single-family home rental business.
* Newer units can be more expensive than a detached single-family home in the same area in which you want to invest.
4. Mobile Home in a Mobile Home Park
* Sometimes you can buy them for almost nothing—just $40 or $50 in some cases our readers have told us about in the warmer areas of the United States.
* Are often low-maintenance structures because they are made of long-lasting metals that resist corrosion or decay over the years.
* Can be rented to the same family for years, saving you time and money and allowing you to spend more time on other money-making deals you like.
* Tenants may be the less desirable type because they are restless and don't stay in one location for very long. Such tenants may not treat your property too well.
* Your mobile home may have to be moved if the park closes or is sold to a new owner.
5. Single-Family Detached Vacation Home
* Can provide you with a high rental income during the vacation
season—often more than a year-round rental pays you in a less desirable area.
* May provide you with tax-deductible trips to desirable vacation areas when you travel to inspect your property, check on tenants, or do other work related to your income-producing real estate.
* Are a "fun" type of business because your tenants are in a happy mood—they're on vacation!
* May be hard for you to rent during times of economic downturns
or other conditions—war, shortages, stock market debacle, or other economic problem.
* Can go in and out of style as the types of vacations or the popular vacation areas change in popularity.
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