The Trusted Home Buyer Logo602-456-4440

How To Determine Which Phoenix Real Estate Investments Best Match Your Style

Martin Boonzaayer

December 5, 2019

Have you been thinking about investing in Phoenix real estate? We can help you learn more about which investments best match your style so you can make the best decision about where to put your money!

Some people want to be hands-on, handling their investments fulltime, without the use of a property manager or assistant. Others want to be as hands-off as possible, only collecting their dividends each quarter. Each investment type comes with its own set of pros and cons. What appeals to one person, may not appeal to another. Below we discuss a few different types of real estate investments so you can decide what is right for you when investing in real estate in Phoenix.

Single-Family Properties

Single-family investment properties in Phoenix are typically the jumping-off point for real estate investors. Managing one unit on a structure they are familiar with will eliminate some of the unwanted expenses and frustrations investing in a larger property may cause novice buyers.

Multi-Family Properties

Multi-family properties will often rent for a lower price than their single-family counterparts, however with multiple units come more income-producing opportunities. Units with 2-4 units are considered multi-family. Anything with more units is an apartment building and classified as commercial property. Multi-family properties are great because even if one unit is vacant, you are likely still generating income from the other units. With a single-family house, when the unit is vacant, you aren’t generating any income at all.

Commercial Properties

Commercial real estate is often purchased by investors with a little more experience. You can’t use an FHA loan for a commercial property, which means your down payment on the property will need to be pretty significant. Many people work with a partner when buying commercial real estate for this very reason. You’ll also need to have knowledge of items not found in residential property such as the cooling systems and security features. You’ll also need to make sure you are calculating the numbers properly in order to receive a profit.

Land

Land is a more passive investment as there are not really any costs to speak of. You will have property taxes, but these are much lower than the property taxes on a structure. With land, you can buy and choose to just hold it until it appreciates, you can buy and develop, you can flip it if it is located in an up and coming area, or you can possibly divide it into smaller lots and resell them at a profit.

Mobile Homes

Mobile homes are a great investment for someone with a lower down payment who wants to test the waters of real estate investment. It’s important to look at the location of the property, the vacancy rates, and the cost of repairs as these will differ from permanent structures.

REITs

REITs or real estate investment trusts are perfect for those who wish to want to invest without any hands-on activity. A REIT is a corporation that manages a portfolio of properties. Anyone can buy shares in a publically traded real estate portfolio. By investing in a REIT, you are able to own real estate without ever having to be a landlord. You will be able to invest in large-scale projects as well as smaller developments. There are many different types of REITs, so do your homework so you can choose the one that is right for you.

Investing in real estate is one of the best ways to build wealth. No matter which type of investment property you are interested in, our team is ready to answer all of the questions you have!

Learn more about which Phoenix real estate investments best match your style! Contact us today for more! 866-488-9923

Explore more

July 30, 2021
How to Sell Your House Webinar With Martin Boonzaayer
Read More
July 21, 2021
How to Sell Your House in Arizona

Arizona is a hot spot for people looking to buy a house. The state has the second-highest rate of homeownership in the country, with two-thirds of homes being owner-occupied. It also ranks near the top when it comes to home price growth, so if you're considering selling your house, now may be a perfect time!  […]

Read More
June 10, 2021
When is the right time to contact a Senior Advisor?

A Guest Post From OasisAdvisor When it comes to such an important aspect in your life or the life of a senior you know and love, you want a trusted advisor to guide you every step of the way. Being proactive and planning is the best approach. We want you to know that we understand […]

Read More
June 2, 2021
Things You Can and Cannot Do When You Have an Exclusive Contract with a Real Estate Agent?

Things You Can and Cannot Do: When You Have an Exclusive Contract with a Real Estate Agent? Having an exclusive contract with a real estate agent leads to numerous benefits, some expected and perhaps even unexpected. However, when a real estate agent asks you to sign an exclusive contract with him or her, he or […]

Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN: