When you start researching real estate investment opportunities, you'll want to consider the different types of investments to determine how to begin your strategy. Each type of investment requires a slightly different approach, but every one goes back to our three core investment principals: 

1. Buy at the right price.
2. Renovate at the right price.
3. Sell/lease at the right price. 

As you're learning about the different types of investments available, keep our primary goals in mind. 

Residential real estate

As the name implies, these are investments in properties that are meant for residential living, including: 

• Single family rentals: These are the most common type of real estate investment. We're talking about condos, townhomes and single-family detached homes. You can manage the property yourself or hire a property management company. 

• Section 8 rentals: In this case, we're talking about single-family rentals that have been designated by the federal government as approved Section 8 properties. Tenants are no- to low-income, and rents are subsidized in part or in full by the government.

• Small multi-family: Popular in the Roanoke Valley, these are duplex, triplex and quad configurations. They're popular first-time investment properties, because the investor can live in one unit and rent out the others. 

• Rehabbed properties: In this case, we're talking about single-family homes that have been purchased, repaired and put back on the market. 

• Vacation rentals: These are often single-family homes that are furnished, come with short-term rental terms and are situated in vacation destinations — beaches, lakes, mountains, etc. Usually, these are professionally managed.  

Commercial real estate

These are properties that are used to conduct business or generate income. 

• Retail: Includes mall complexes, town centers, strip malls and standalone properties. 

• Office: Several categories, based on where the property is located, its quality and how much rent is collected. Also includes medical office space. 

• Industrial: Heavy manufacturing, light assembly, warehouses and flex industrial, which often offers a combination warehouse-office space. 

• Multi-family: These are buildings used to house multiple families, classified by size of the building, where they're located, and what type of structure is there. 

Land

• Commercial development: Land that is developed with commercial centers, including retail, office, industrial or multi-family. 

• Residential development: Land that is developed with residential real estate structures, usually single-family detached homes.

• Farm land: Land that is zoned for agricultural use. 

• Mining: Leasing a property's mineral rights can provide long-term cash flow.

Real estate investment trust

A REIT is a company that owns, operates or finances income-producing real estate. REITs invest in multiple property sectors, then provide investment opportunities to holders of stock or mutual funds. Contact your financial advisor for more information about REITs. 

Do you have other questions about real estate investing? I'd love to talk with you about your goals. Contact me at 540-793-0442 or rpayne@mkbrealtors.com.