Single Family Homes Are A Great Investment
If you are all too ready for making an entry into the world of real estate investment, then there is one secure area for your investment , and that is single family homes in the low price ranges. There are so many people out there who are thinking to make quick money by buying a multi-million dollar house and turn it around for a $100.000 profit. But you have to keep in mind that all that glitters is not gold. There is a rare chance to sell these bigger houses at a good rate. You may have worked really hard on these houses and have attained private money loans for them too, but it is rare that you are going to see these huge houses actually work out. There are often the same types of problems with large homes and commercial properties.
On the contrary, you can find a single family house at a much cheaper rate, and the chances of selling it at a good profit margin after rehab are greater than the big houses. You can buy a middle level house by acquiring private money loans from a good lending agency. The medium range of houses falls in the bracket of $80,000 to $150,000. The reason for assurance of definite profit from small houses is that more and more families can afford the price. Wealthier people are much more selective in choosing location and are more interested in having their own set of construction requirements. I also don’t recommend that real estate investors buy duplexes, triplexes or four-plexes. Although these properties are considered residential from conventional lending guidelines, these properties pose problems for fix and flip investors. The major reason for this is the difficulty in finding justifiable comparables for these types of properties, and in many cases the market for these properties is very small.
The definition of the best property in real estate investment is the one that can give you the maximum amount of profit with the least amount of work, as fast a possible. This is what makes lower to middle range single family homes your best bet.
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