How to Select the Best Residential Investment Property

Residential investment properties are properties that you invest in, in order to make money through resale or leasing the property to residents. There are three different kinds of residential properties. Each type has its own set of financial requirements as well as advantages and disadvantages.

One should consider all this factors before investing in one of these types of property.

The three kinds of residential properties are:

·         Privately owned homes

This is a single residence occupying an independently owned piece of land. Such a property is highly valued because of the amount of space and level of privacy it offers sample of our pictures are at this website House plans in Kenya which will help you to make a good choice. The negative side of this property is the fact that the house will remain unoccupied and available in the market for a long period of time because of its high value.

There is also a high probability that the property can depreciate in value due to negligence by the residents. The property manager has to provide regular maintenance for such a property. This can be a challenge especially if the property manager is managing many properties.

·         Condominiums

This type of real estate is where residential houses are built in a complex. The houses themselves are independently owned but other parts of the complex like roads, gardens, swimming pools and play grounds are held in common for all the residential houses in that complex. A condo is valued lower than a privately owned home. Agreements and bylaws are set in place to govern the conduct of the residents.

When such property is well managed, the value of each residential house goes up and vice versa. The maintenance of such a property usually tends to be good due to the joint ownership of the shared facilities compared to maintenance of a privately owned home that has been rented out. 

·         Multifamily Properties

This is where individual houses are located within a single building. Examples are apartments and duplexes. The advantage of multifamily housing is the fact that different houses are occupied by different residents. Therefore the sources of income are diverse compared to condominiums and privately owned homes. It is highly unlikely that all the houses in a multifamily property are unoccupied at the same time. The owner is therefore guaranteed of some income each month.

One should consider the pros and cons of each type of residential investment property before deciding on which kind to invest in.