EMC Investments
Types of residential investment properties
Find what works for you
Single family home
Great investment to get started as it is more affordable and is easier to manage in gross costs. It will also allow you to diversify in different neighbourhood since it is easier to buy and sell .
Duplex, Triplex and Fourplex
These types of properties will allow you to have a lower cost per-unit and have bigger monthly cash flows. In addition, you will be able to grow your portfolio in less time while having access to easier and better financing.
Apartment building
This type of investment will require a higher capital for the inital investment. However, it will provide a higher return on investment, lower risk, tax advantages and great passive income for a long term investment.
Vacation house
This little getaway house will allow you to earn passive income when you are not enjoying your time at the property.
Things to consider...
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Neighbourhood
The neighbourhood will determine what type of tenants you will attract. Take into count the schools and amenities close-by, the average age of residents, crime rate etc...
Property taxes
These are inevitable, so make sure you keep in mind that they need to be paid every year.
Future developments
Look for the city plans for future development. Will there be construction? Will there be new amenities and attraction close-by? Will this increase or decrease the value of your property?
Renovations
Are renovation required for the leasing of this property? If so, how much money are you willing to put into this project? Will it increase the value of the property?
Average rental income
Evaluate the competitive markets that surrounds you. Calculate how much you will need in rent in order to have positive cash flow's each month in order to create a steady income.
Environement
Look into the job market and seek out an environment that has growing employment opportunities.