As an investor in Utica, you’ll want to work on finding your real estate niche. Some people will find success in areas where others won’t. Learn more about the different types of real estate investments you can make in our latest post!
For the sake of this article, we will discuss only a few of the different types of real estate investments you can make. However, there are many other ways to invest and make money through Utica real estate investment. Take a look at some possible niches below and feel free to call us at any time with your questions! (315) 922-9600
As the most common type of real estate investment, a residential rental can take on many forms. You could choose to purchase a single-family house, a condo, a townhome, or even a duplex, triplex, or quad. Each type of property will require different levels of involvement as well as different financial obligations. Owning a rental in a private community with an HOA will help to alleviate some of your responsibility, at least for the outside of the property. However, HOA’s can have their own downfalls, so make sure the ideals of the HOA align with yours to avoid any hassles, fines, or headaches.
With the rise of sites like Air BnB and VRBO, the vacation rental market has boomed. People all over the country are opening their doors to travelers, sometimes making in a week what they would have previously made in a month. The numbers may seem huge in comparison, but there are additional costs associated as well. A vacation rental will require frequent cleaning and will likely take a bit more abuse, resulting in increased repair expenses.
Foreclosures and Short Sales
The right foreclosures and short sales have the potential to make big bucks for those who know what to look for. Inexperienced investors may struggle to make the profits they have heard about or expected to make. These sorts of investments are better left to those who have a bit more experience with real estate investment.
Once you’ve gotten a few smaller residential properties under your belt, the next logical step is to move onto a larger building with more units and more income possibility. A mid-size commercial multi-family property contains 5-40 units, whereas large complexes are considered to have 40 units+. Apartment complexes are a great way to maximize profit on a relatively small area of land.
Office & Retail Space
Commercial space housing offices, restaurants, and retail locations can provide you with big profits when you are in the right location. Do your research on the area, taking note of any future development plans. Seeing major retailers such as Starbucks, Panera Bread, Wal-mart. Home Depot and Costco move-in to the area are sure-fire ways to know an area is expanding. These retailers spend millions evaluating the area, looking for the perfect spot for their store. If you see new retailers popping up, you’ve likely found a great area for your office or retail investment.
Mobile home investment is a niche that is often ignored but is consistently growing in popularity due to its accessibility. For a small investment, you can get your foot in the door, paving the way for many other types of real estate investment. You can choose to either fix and flip these homes or renovate and rent out. Small homes are in demand like never before and with more and more people opting for a more nomadic lifestyle, mobile homes might be something to watch in the real estate world.
The demand for land may not be as large as is the demand for real estate containing a structure, however for the right investor, its a niche not to be ignored. With land, there are no costs aside from the property tax, which is much lower than that of a house. The property can’t be damaged, making your risk very low. You can either choose to wait while the land appreciates, selling when the time is right, or you can develop the land into an income producing property.
While this seemed to peak in popularity a few years back, it’s not to say there aren’t still amazing profits to found flipping houses in Utica. When you are able to buy the right property at the right price, you’ll be able to quickly renovate, sell, and turn a profit. It’s important to have streamlined systems in place as well as strict budgets. Flipping houses can easily get you in over your head if not prepared for properly.
When it comes down to it, there are many ways you can invest in Utica real estate. Finding your niche can be extremely profitable, however diversifying your portfolio can never hurt! Discover your niche, but don’t be afraid to consider alternate investment types when the profits present themselves.