SFH – Single Family homes
This is the classic landlord-tenant model of real estate investment: the landlord buys a property, rents it out to a single household, then pays the costs of mortgage, maintenance and so on while receiving the rent as monthly income – which goes up enormously once the mortgage is paid off.
In many areas, multifamily properties will bring in higher returns than a single-family house. The high-cost initial outlay and time-consuming ongoing maintenance mean this approach is far more achievable through the turn-key model.
- NNN Retail
‘NNN’ stands for ‘triple net,’ referring to a commercial real estate arrangement whereby the tenant is liable for real estate taxes, insurance, and maintenance. These bring a lower return than some projects might, but they are attractive, stable deals.
- Strip Malls
Local, multi-tenant retail strips bring all the benefits of any real estate investment with one big bonus: with multiple tenants representing multiple retail sectors, a strip mall is a diversification wonderland!
- Shopping Malls
Shopping centers offer a similar opportunity to make a large profit – but there’s a huge investment required. Be sure to invest in a great location with a diversity of tenants.
- Medical facilities
Healthcare real estate is an excellent bet for investors because of the stability of the sector – no matter the state of the economy, there will be (and growing) demand for doctors.
- Office buildings
This is a gradually increasing sector, and one of its most attractive features is its diversity: office buildings come in all shapes and sizes, making them attainable for many different investors.
You can easily make more money from a vacant warehouse by finding a better use for space: take on a tenant, or convert the building to a self-storage facility.