About 63 percent of Americans own property, according to a recent Gallup poll. You're one of them — and you're interested in having more than one piece of property in your portfolio.
Investing in property isn't always a foolproof process. Property values indeed tend to steadily increase over time, making it a great area to invest in in general. However, simply put: there are better properties to invest in than others.
That's the secret you want to know: what are the best property types to invest in? Here are the top three to look out for in your search.
1. A Multi-Family Home
It's tough to find multi-family homes, and for good reason. They are some of the best properties to invest in of all.
That's because your multi-family home can hold multiple tenants. That means they can more than cover your mortgage payment with their monthly rent checks. In fact, you may be able to afford a more expensive property if you consider that your multiple tenants will all contribute toward the mortgage.
Plus, a multi-family only has four walls and a roof, and it will share many of the major systems that power it. So, if you need to replace your tenants' roofs, it's only one roof. If you had them in separate investment properties, you'd incur those expenses multiple times.
2. A Detached Single-Family Home — at a Steal
Now, most investors' first instinct will be to look for a single-family home. It's the easiest option to fathom and manage, after all. If you want to go this route, though, keep in mind that not just any home will do.
If you want to make the best possible investment, then you want to find a single-family home at a bargain price. That way, you can guarantee that you have a low mortgage rate, which will increase the cash flow you receive from your investment property.
3. A Mobile Home
This one may have you scratching your head. A mobile home is a good investment property? The answer is yes — here's why.
Most of the time, mobile homes cost less than $100,000 per month, which means your monthly payments will be low. It's easier to ensure that you will get your monthly payment back and then some.
A lower mortgage makes it easier for you to pay it off quicker. And because your mobile home is so small, maintenance won't cost that much, either — it's much cheaper to repair a small property than, say, a large investment mansion.
Find Properties to Invest In
These are only three of the many types of properties to invest in. Which one is the best for you, your budget, and your goals? Ultimately, you're the only one who can decide.
If you do go with a residential property, we can help you manage your place after you've signed the mortgage and a lease with new tenants. Click here to learn more.