There exist several kinds of real estate, and several means to invest in them. Which means is most advantageous is for you to decide, based on your certain needs. Here are a few ways you may want to think about, with their upsides and disadvantages.
1. Rental properties. Pros: One of the less problematic means to get started, and sound long term ROI. Cons: Being a rental property owner is not much fun, and you typically wait a while for the huge pay-off.
2. Rent-to-own homes.Advantages: When you buy a house, then sell on a rent-to-own agreement, you get higher rent, and the buyer is normally accountable for upkeep. Cons: The bookkeeping is tricky, and majority renters are unable to complete the purchase (this can be an advantage also, but it does mean a lot more work for you).
3. Low income rentals. Advantages: Similar to any rentals, just with more cash flow. Downsides: Similar to any leases, just with more repairs and tenant problems.
4. Fixer-uppers. Upsides: A rapid ROI, and it could be more creative work. Disadvantages: Higher risk (a lot of unpredictables) and you get taxed heavily on the gain.
5. Purchase for money, sell for terms. Pros: You receive a high rate of return if you pay in cash in order to get a good price, and selling on easy conditions in order to obtain a high price AND more interest. Cons: You tie up your capital for a long time.
6. Purchase landed estate, split it and sell it. Upsides: It is more effortless than most realty investments, with the possibility of great profits. Cons: It could take a long period of time, and you have expenses, but no income from it as you’re waiting.
7. Boarding houses. Upsides: You could receive a lot more money renting a home by the room, particularly in a college place. Downsides: You could receive a lot more headaches renting a home by the room, especially in a college town.
8. Commercial real property. Advantages: Long term triple-net leases mean very little management and high returns. Disadvantages: Tough market to enter, and you can lose money on unoccupied storefronts for a year at a time.
9. Buy, dwell in it, and sell. Upsides: The new tax law means you can fix up the house, and sell for a huge tax-free gain after two years, then start the process again. Cons: You will have to relocate a great deal.
10. Speculation. Upsides: Purchasing in the path of growth and holding until values rise could produce large profit, especially if you purchase low to begin with. Downsides: Prices aren’t that predictable, you have spendings without revenue while you are waiting, and transaction costs can eat most of the gains.