Residential Investment Property is Important to You

Residential investment property is residential property that an investor purchases in order to profit either by reselling or renting.

There are typically three types of residential properties, each with their own potential investment risks and benefits.

Private Houses: An individual house on an individually owned plot of land. The value of a private house is typically high due to the space and privacy but precisely because of its higher price it is more likely to stay unoccupied and on the market for longer than ideal. There is also no mechanism to ensure it won't depreciate due to neglect by its occupants save for what direct observation and attention the landlord can provide himself, which can be difficult if he or she has invested in multiple properties.

Condominiums: A type of housing where part of the property is individually owned and the exterior areas, internal roads are owned commonly. The value of a condominium is generally lower than that of an equivalently located private house and they are governed by a series of agreements and bylaws that each of the inhabitants have signed. Proper governance can raise the value of a condo and improper one can lower it. As a whole, the value of a condominium can fluctuate but because much of it is owned by everyone then maintenance and cosmetic repairs, at least in the exterior, are less of a problem than with private houses rented out.

Multifamily Housing: A classification of housing where several individual housing unites reside inside one building.The main advantage to using multifamily housing as residential investment property is the following: when a condominium property or a private house is inhabited, it is completely inhabited and when it is uninhabited it is completely uninhabited. The same is not true of multifamily housing: a single building can be completely inhabited, completely uninhabited and anything in between. Because there are so many housing units inside the building it makes for an ideal source of diversified income which eliminates the hassle of depending exclusively on one specific source.