Income property is a type of real estate property that has been purchased or built, in order to start generating a passive income. The income property can be a commercial or residential property. The income is typically generated in 2 different ways, the first being income by renting the property. The second is the appreciation of the property’s value in due time.
Income properties can generate a nice monthly payer for the owner although there are a risks involved. This can include problematic tenants, the local real estate market, and interest rates. The owner of an investment property should also set aside some funds for maintenance and repairs should they arise.
Different types of properties offer different advantages as income properties.
Single family homes – Many single family homes do not require a home owners association which can save some fees. Tenets tend to reside in single family homes for long periods of time. This leads to low vacancy rates and continuous rent checks for the owner.
Multi family homes – apartments and condos can have a lower cost to purchase as opposed to single family residences. Owning a few properties in a multi family residence could make the process of managing it much easier.
Studio apartments – Studio apartments can be one of the most affordable types of properties. In addition to that, they typically have low maintenance fees. This can be a great choice especially if located near a college or university. Studio apartments are also popular in down town areas of large cities.