There are several types of real estate investment strategies, including:
1. Residential rental properties – This type of real estate investment involves buying single-family homes, duplexes, triplexes, or larger apartment buildings with the intention of generating rental income. The goal is to generate positive cash flow from rental income and/or realize long-term appreciation.
2. Commercial real estate – Commercial real estate investments can range from office buildings, shopping centers, industrial parks, and more. Investors typically aim to generate income through rent, as well as long-term appreciation.
3. Fix-and-flip investing – Fix-and-flip investing involves buying a property, renovating it, and reselling it for a profit. This strategy can be a good option for those who have experience in construction, contracting, or real estate.
4. REITs (Real Estate Investment Trusts) – REITs allow individuals to invest in a portfolio of properties without having to buy, manage, or finance them individually. REITs are publicly traded and are required by law to distribute 90% of their taxable income to investors in the form of dividends.
5. Raw land investments – Raw land investments involve the purchase of undeveloped land with the expectation of holding onto the property for a long time and realizing appreciation through price appreciation. This type of investment can be riskier than other real estate investments, as there is often a lack of cash flow from the property.
6. Short-term vacation rentals – This type of real estate investment involves purchasing a property and renting it out on a short-term basis, such as through platforms like Airbnb. The goal is to generate high rental income while taking advantage of the property’s appreciation over time.
7. Development and new construction – This type of real estate investment involves developing new properties or improving existing ones with the goal of selling the properties at a profit. This strategy can be more capital-intensive and requires significant expertise in real estate development and construction.
8. Mixed-use properties – Mixed-use properties combine residential, commercial, and/or retail spaces in a single development. This type of investment can offer a combination of rental income and potential appreciation, making it a good option for those seeking a combination of income and growth.