The next property I want to talk about is investing in apartment buildings. The way you invest in apartment buildings is quite different than investing in residential properties. Now, when I say apartment buildings, I usually mean buildings with 10, 20, or 30 units or more. The real definition, I guess, from an investment perspective, or from a mortgage perspective, is anything with 4 units or more is considered a commercial purchase.
One of the questions I get asked a lot from people getting started in real estate investing is whether they should use a realtor or not. Obviously, the main reason they ask this question is because they are concerned about the costs. They’re worried about having to pay that 5% when they’re selling their property.
So today I want to talk about investing in raw land. What does that mean? So raw land is just undeveloped land … a piece of land with no building on it. No physical structure on it that would allow you to earn income from. It’s a piece of land. There is no single-family home on it. There is no commercial building on it.
Another property type that you can invest in is multifamily homes. A multi-family home is where more than one family can live in the building. Those are properties like duplexes, triplexes, fourplexes, and it keeps going up, but usually, it’s those two, three, or four-family buildings that I’m referring to.
Today. I want to talk about investing in single-family homes What are the advantages of investing in single-family homes? First of all, let’s qualify what a single-family home is. It’s usually a home where there’s one tenant that can live in it. Now that is usually a two- or three-bedroom home with two or three baths. It is usually a private entrance and it’s detached. I guess it could be a townhome because that’s still considered a single-family home.