The market is full of properties for the new investor to search for the ideal investment. The problem is how to determine among these where to start on your path to success. While you will find a plethora of selections, that does not mean the first option that comes along will be the right one.
What it does mean is you have sufficient time with the amount of inventory to be selective in the same way seasoned investors like Yiannakis Polycarpou would approach the process. An investor of this caliber watches until the investment with long-term development potential comes into their radar and then reacts. But investors with this talent also can recognize these properties on sight.
For someone with little experience, it would take a bit more mentoring or guidance to know which particular properties would make the best starter investments.
It is not generally an instinct for most investors but more so something that comes with time and experience as you progress in the industry. Let us check out what some would recommend for those not as versed in purchasing a property.
Types Of Properties for Starting Property Investments
The suggestion is that investing in real estate is among the ideal methods for growing wealth. If you hope to develop wealth, you need to be persistent, ambitious, driven, and willing to put in the hours.
It takes considerable time to develop the skill and insight to know which properties are adequate. The goal is to obtain long-term output over a brief stint, so you get the most outstanding returns. Click here for guidance on building your investment portfolio. Let us look at a few property options suggested for those with less experience in the industry to get the process started.
An Airbnb can consist of virtually any property you choose to rent out in that capacity, whether a studio in the city or a log cabin in the middle of the woods. The concept has grown significantly in popularity and demand over the years with certain benefits from standard rentals. However, you will note some specific downsides as well.
One positive as an investor is you can generate high rental income with these on a nightly basis. Suppose the property is in a good location with a likelihood for continuous bookings throughout the month.
In that case, you are likely to bring in much more money in this scenario than you would if you were to rent a traditional property with a single renter.
The downsides include having people coming and going potentially nightly, weekly, monthly with the need to continuously clean and maintain the property and have the ongoing possibility of renters who neglect the place. Airbnb will often reimburse for damage, but the hassle can be a source of frustration.
The mobile home
A great way to start investing in properties is with mobile homes, precisely because of the minimal upfront expense with price points generally coming in under the $100,000 mark but typically below that. A positive cash flow is attainable monthly due to the likelihood of a low mortgage payment.
Another positive with the mobile is the minimal maintenance costs compared to a larger single-family situation. With those, you can run into exterior painting, roofing issues, window and door replacements, HVAC service, and so much more.
That is not the case with a mobile. There will be maintenance but not to that extent.
The thing to remember is these can generally be paid off in roughly ten years due to the low cost. The most valuable piece of the property is the land. Depending on the parcel, you could at some point divide this and sell it to developers, gaining a remarkable return.
Multi-family homes are probably the ideal investment for first-time inventors. Still, these can be challenging to come across because investors know the potential, the positives, and what they generate. These are timeless with their value regardless of when you decide to sell.
When you wonder what seasoned investors like Yiannakis Polycarpou would say to a new investor just starting with properties, it is essential to understand that, like everyone else, he likely began his career by researching and self-educating to find the right path for him.
Whether you choose multi-units, Airbnb, or even mobile homes, it has to be your journey. You cannot mimic someone else’s success; you have to develop your own, so you receive that personal fulfillment.