For the purposes of this article, "investment properties" refers to income producing properties, or properties that can readily be flipped for a profit. Primary residences which see returns in the form of capital appreciation are not included here.
The single family investment property is a house or condominium bought with the intention of renting or selling it to a single tenant or buyer. Common ways to invest in single family properties include buying foreclosures, fixer uppers or other properties believed to be undervalued for the area. The main goal is to buy something you feel is undervalued, fix it up and sell it for a quick profit, or rent it out to a single tenant or family. You should believe that the ARV is much greater than the purchase price.
Pros:- They are smaller properties, so they require a smaller investment.
- When the economy is bad, it will be harder to flip a property because fewer people are able to buy.
- A vacancy in a single family home or condo means you will have zero returns until you are able to find a tenant.
