Many investors jump right to residential properties when considering their real estate options, but the market is ripe with other viable real estate investments, too.
In this post, we’ll look at a few investments that can provide great returns with a fraction of the hassle that comes with residential property ownership.
Self-storage facilities are always in high demand, solidifying them as one of the best sources of passive income for investors. Buy into the self-storage market for a consistent return from residential customers and businesses in need of a place to house goods until further notice.
Commercial real estate encompasses buildings used for office space, hospitality and other businesses. Many investors choose commercial real estate for the possibility of consistent cash flow achievable through multiyear leases with profitable companies. As lucrative as these properties can be, commercial real estate is often expensive to purchase, resulting in minimal competition for the buyers willing to pay the price.
Industrial real estate consists of manufacturing buildings, warehouses, distribution centers and other properties of a similar variety. Like commercial properties, industrial real estate investments are often expensive due to the size of the buildings.
Industrial real estate presents a high-risk, high-reward scenario for investors. The properties can yield significant returns when they house successful tenants, but industrial businesses are fickle. Most industrial real estate investors have large portfolios and can justify the risk.
Retail real estate properties like storefronts, shopping malls or strip malls are another viable choice for investors looking for non-residential properties. There are always businesses willing to lease retail space, many of which intend to stay in one building for years on end. Investing in a retail property can ensure consistent revenue with the possibility to negotiate a portion of the tenant’s sales.
A mixed-use property is one that has the characteristics of any number of the others listed above. Some multistory buildings will house office spaces on their upper floors while featuring retail space at the ground level. Investing in a mixed-use property will allow you to collect revenue from numerous types of tenants.
How Should I Invest in Real Estate?
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