Rental apartments are a favorite starting point for beginner real estate investors. They ensure a steady flow of income from your property and will grow your capital without incurring many risks. However, there are various types of apartments to consider, and knowing them helps make an informed decision.
Let’s check them out:
1. Studio apartments
These are generally single rooms with a multi-purpose space. They feature an open concept design and are quite affordable. This means that they attract many renters, thanks to their low rental rates. Although combining the bedroom, kitchen, and living room in one space may not appeal to all, these apartments will likely attract bachelors and anyone on a budget.
2. Duplex apartments
Duplexes are apartments with rooms on two floors. They are not very popular but offer numerous benefits to the tenant. Duplexes separate the sleeping space from your main living and cooking area. Just like the Brookline Apartments, they are spacious and can accommodate more beds. Duplexes are ideal choices for big families or anyone who cares about additional space.
3. Alcove apartments
Alcove apartments resemble studios, but the only difference is that they are bigger. They feature a carved section in the main room that acts as the bed space. In some cases, it’s divided by a wall or tucked off to the side with an L shape. Alcove apartments offer additional privacy than studios due to the bedroom setup. They are more advantageous if you share the space with a roommate or partner.
A loft can be a building’s upper storey or an elevated space in a room. Lofts are large, featuring moderate or high ceilings, and are common in commercial buildings converted into residential units. Lofts are very spacious and offer more flexibility compared to studios and alcove apartments. They are favorite choices for many but are more costly. They also come with higher maintenance and heating costs but make great spaces for families and roommates.
Railroads are a series of connected rooms. They are common in the US and many other parts of the globe. Railroads apartments feature a straight floor plan, and you’ll likely get three to four connected rooms.
You’ll get these apartments in residential apartment setups or older converted buildings.
Railroad apartments are spacious, and you can get them from one bed-roomed to three- bed-roomed spaces. What’s more, they are cheaper than conventional apartments.
What are the blunders to avoid when investing in rental apartments?
Rental apartments involve signing a contract between the landlord and the tenant. Go through the details carefully, and include all aspects of the agreement beforehand. Missing some clauses can be costly to fix, and you may have to hire an attorney for help. Improper insurance is yet another mistake. Have the right insurance to safeguard your property in case of poor weather and other calamities.
The bottom line
Investing in real estate is lucrative when you choose the best properties. Apartments offer good returns, but the location is critical. Invest in a strategic place with high chances of growth, and you’ll benefit a lot from the property in the future.