Real estate is a great investment opportunity for anyone looking to expand their portfolio because it is a great way to make money now or save for the future. However, there are many types of properties available including condos, land and townhouses, making it difficult to choose a strategy. If you aren't sure where to start, consider investing in townhouses for these three incredible benefits.
Easy Cash Flow
The best reason to invest in townhouses is because it is easy cash flow. Townhouses and condos are attractive to renters because they are usually more spacious than apartments. However, townhouses have one advantage to condos: the yard. For starters, townhouses usually have larger yards than condos. In fact, many condos have no yards. Also, with a condo, you only own the physical condo. Anything exterior does not belong to you, including the yard. With a townhouse, however, you own the exterior too, including the yard. This means you have control over what renters can and cannot do to the yard.
With a larger yard, you can offer renters more flexibility, such as having a dog. Similarly, you can charge renters extra because of the yard and additional benefits. Therefore, even if you are still paying a mortgage on the rental property, you can still make a profit by charging more than you pay each month. Finally, if and when you decide to sell the property, you'll get more back because the property is included too.
Investment Groups Can Help
A big reason people avoid getting involved in real estate is they don't have the experience. When you purchase a rental property, you become a landlord unless you hire a property manager to handle the repairs, complaints, etc. for you. Otherwise, you are responsible for everything, which can be stressful for many investors.
If you are just starting out, you should consider a real estate investment group. They commonly purchase properties like condos, apartments and townhouses. Then, you and other investors can invest in individual units. The perk is that the investment group serves as the community manager, so you get all the benefits of investing without the work.
Amazing Amenities and Services
Many townhouses are parts of communities consisting of other townhouses. These tend to be part of a homeowners' association (HOA). Most HOAs are required. This means you have to join the HOA, but as a member, you get access to amenities and services. For starters, many HOAs offer community swimming pools, parks, club rooms and many more. All members of the community are allowed to use these amenities, and they can usually bring limited guests.
Another benefit of living in an HOA is they provide many services for you. Some HOAs are able to strike deals with different providers (cable, phone, internet, etc.) for group rates. You still pay for your own services, but if you choose these providers, you may be given a deal as part of the HOA group. Other HOAs provide all services for public areas, and some may provide landscaping, maintenance to some homes. Of course, you must pay a fee to be a member of the HOA, and there are rules to follow, but many families like renting townhouse in the communities for their many benefits.
Investing in real estate is an excellent choice, and everyone who wants to increase cash flow or save for their future should consider. Investing in townhouses has many benefits, and if you are still unsure, contact a real estate investment group in your area today, so they can do all the hard work while you reap the benefits.