Explore real estate investing strategies that generate rental income. From rental homes to multifamily and commercial properties, find out which investments can build lasting wealth as you build your real estate portfolio.
Real estate investing is one of the most reliable ways to build long-term wealth, but for new investors, the number of options can feel overwhelming. Should you start with a single-family rental, look into multifamily properties, or consider something less traditional like an RV park or storage units? Each path comes with unique opportunities and challenges.
In this video, Rentec Direct’s Kaycee Miller will walk you through the different types of real estate investments available, from traditional homes to commercial properties, and even share some personal insights as a landlord, investor, and developer. By the end, you’ll have a clearer idea of what types of investments might align with your goals and how to think about building a strong portfolio for the future.
Real Estate Investing for Beginners | Types of Properties to Build Wealth – VIDEO
Real Estate Investing for Beginners | Types of Properties to Build Wealth
Let’s talk about different types of real estate investments. Real estate investing is one of the best ways that you can secure, sustained wealth and profitable income throughout your future. It’s one of the most reliable types of investments too.
I’m a landlord, a real estate investor, a real estate developer, and I work for Rentec Direct property management software. And we built our business on the profitability of real estate investing. Those are our clients, the landlords and the property managers who manage rental properties.
Why Real Estate Investing is Profitable
Real estate investing is all about finding a rental property, a property that you can buy and then rent to someone else, and generate income. There are lots of different types of real estate properties that you can invest in. So let’s go over a couple of them.
Single-Family Homes
The most traditional one is a single-family home. Think of just a standalone home that can be rented out to a family or to a household, and you collect rental income.
Multifamily Properties: Duplex, Triplex, Fourplex
From there, it goes up to the number of properties that are on one single parcel or land and whether or not they’re connected. So duplex, that means two houses that are connected, a triplex, a fourplex, an eightplex. It kind of goes up from there. Different states and different areas have different rules about what’s considered a multifamily property, but that usually means multiple units on one parcel of land, or they may or may not be connected.
Accessory Dwelling Units (ADUs) and High-Density Housing
As we’re seeing more and more legislation encouraging high density housing, you hear about ADUs being added or accessory dwelling units being added to different plots of land. So you can increase the density and provide these multifamily housing opportunities in one contained area.
Then you can also have big multifamily properties that are a hundred units, a thousand units. Think about high rise buildings in cities or apartment complexes that are spread out over an area.
Non-Traditional Real Estate Investments
And within the residential real estate and types of investments, you can also go beyond those traditional styles of rental houses to incorporate some more flexible living arrangements like co-living, which is a property, typically like a house, that is rented out as if it’s an apartment. So each room is rented out on an individual lease, and the bathrooms, the living room, and the kitchen are kind of treated as that common area, like a courtyard, if you will.
So, that’s kind of a non-traditional way of thinking about real estate investment properties, but there’s also mobile home parks or storage units, and RV parks. These are all different types of real estate properties that can generate rental income for you.
Commercial Real Estate Investments
And that’s more on the residential side of real estate investing. But then you can also go into commercial real estate investing, where you are renting out to businesses.
Or there’s mixed-use commercial real estate, where mixed use traditionally means that there’s both residential and commercial properties in one unit.
Mixed-use properties come to mind when you think of a property in a downtown area or a business park where there’s commercial properties on the bottom, but then people live residentially on top.
Personal Insights and Favorite Investments
So, there’s lots of different ways to think about real estate investing. Some of my favorites are multi-unit properties because it’s one place that you can generate the most amount of income, but it’s just one property that you’re maintaining.
We also like to think about kind of those non-traditional ones. My husband’s really into the idea of an RV park for an investing opportunity because of the limited maintenance that might be required for it.
But it’s always important to understand your local laws that pertain to managing these different types of rental properties or investment properties and how that might impact the profitability of the investment.
Final Thoughts
So stay tuned. I would love to go over what my portfolio looks like, what kind of properties we currently manage, and dive a little bit deeper into what I think would be my next great investment in our next big project for our real estate investing portfolio. My name is Kaycee Miller. I work for Rentec Direct property management software. You can always find more tips on the Rentec Direct Blog. Like and subscribe for more great videos on how to be a great landlord, advice for tenant,s and advice for being a property manager.
