4 Types of Real Estate to Invest in With the Potential for Larger Returns

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Even though investing in real estate can be lucrative, you need to make sure that you are focusing on the right types of properties. Here is a quick look at four real estate properties that you should consider if you want to maximize your return on investment.

Vacation Rentals

While a vacation rental property can make the owner quite a bit of money, the initial investment and ongoing expenses are often very high. To keep your vacation rental as affordable as possible, you might want to purchase a plot of land and then build a custom residence. That is a particularly good option for vacation rentals that are going to be placed off the beaten path and far away from any nearby cities.

Commercial Property

Investing in commercial real estate is usually slightly more expensive than investing in residential real estate, but the profits tend to be much more consistent. Businesses want to remain as stable as possible, and most of them are going to do everything in their power to stay in the same commercial units. As an added bonus, most businesses want to keep their properties as eye-catching and well-maintained as possible so that they don’t drive off customers, and that is a huge bonus for the landlords.

Industrial Property

Industrial property can include everything from manufacturing plants to storage warehouses, and it is a good option for those who have a little extra money to invest. With industrial property, you will usually sell the land outright instead of setting up a monthly, quarterly, or annual rental plan. As long as the land has been correctly zoned, it could be worth quite a bit to the right buyer.

Flipping Single Family Residences

If you are willing to put a little extra work into your investments, then you might want to consider flipping homes. By the end of 2019, the average flipper was enjoying a gross profit of $64,900 per flip, and that is a huge ROI. That being said, flippers need to time the market extremely well and have their funding lined up if they want to make money. Before you invest in any type of real estate, you might want to file for an LLC. With that type of company filing, your personal assets aren’t going to be at risk if something goes wrong with your investments and you end up owing a bit of money.


Anita Ginsberg is a freelance writer from Denver, CO. She studied at Colorado State University, and now writes articles about health, business, family and finance. A mother of two, she enjoys traveling with her family whenever she isn’t writing. You can follow her on Twitter @anitaginsburg


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