Exploring Real Estate Investments: Types Of Real Estate
April 18, 2018
When it comes to investing in real estate in St Louis, the first thing to consider is the features of the underlying real estate. This is because the property’s level of performance will most likely affect the performance. Not only that, it will affect the viability of your investment.
When considering the underlying real estate, one of the most significant factors to consider is property type. Every Saint Louis real estate investor knows the importance of choosing a good location and neighborhood. Besides location, the type of property is another factor to consider. If you are considering investing in real estate in St Louis, check to see if the underlying properties are residential or commercial property or a combination of both.
Not all type of real estate in St Louis MO has the same set of drivers influencing its performance. It is however wise not to assume that a particular type of property will outdo another type that has a high-performance rate. In the same manner, you can’t assume that a specific type of property with good performance level in the market will maintain that level forever.
Types of Real Estate in St Louis
Essentially, you need to consider whether you want to be a landlord and earn monthly income from rent or prefer buying older properties, fix them and list them in the market for profit. Here is a list of the different types of Saint Louis real estate investments
Residential Real Estate Rentals
For most people, the only thing that comes to mind when it comes to real estate investment is the single family home. This is the kind of home that is built solely for one family. They don’t have to share anything with tenants. They have their own driveway or sidewalk that does not interfere with other properties.
Of course, there are lots of single-family homes in St Louis with different pricing. For most tenants seeking convenience and privacy, they prefer this kind of housing. Since single family homes are in abundance, finding the right one at a good price is easy. Of course, there will be as many buyers interested in a particular home. So if you find the one that perfectly fits your lifestyle, contact a professional who buys houses in St Louis to help seal the deal.
The second option is the multi-family housing which includes duplexes, triplexes, and quadplexes. These homes allow at least two families to live together on the same plot of land. This investment option means multiple rent payers. Unlike single family homes, if a unit is empty, the other units will still yield income.
Commercial Real Estate Rentals
Commercial real estate investments include office buildings, retail buildings, warehouses, or industrial buildings. These kinds of properties cannot be compared to a residential real estate, as it specifically built for business purpose. Commercial tenants stay for a longer duration and it takes a lot to qualify to buy a commercial property. It requires a lot of cash investments and a worthwhile and profitable option.
Regardless of the property type, you need to be sound financially before investing in real estate in St Louis. The good news is, there are private lenders that can help you fully finance your property. This is indeed the best options than going to financial institutions with higher interest rate.