Many investors choose to mix up their portfolio with some unconventional real estate investments. Which is right for you? Keep reading to learn more about some of the best real estate investments available in the Richmond area!
As a real estate investor, it is important to diversify our portfolio. Putting all of your eggs in one basket is never a wise choice. And by diversifying, you might find a niche you wouldn’t have discovered otherwise, which could end up being your path to abundant financial success. Don’t rule anything out until you look at the pro, cons and the numbers.
The vacation rental industry is huge. With sites like Air BnB and VRBO, people are cashing in on hosting travelers. Many people prefer to feel at home when they travel as opposed to a bland hotel. Travelers can have the use of a kitchen, a yard, and have some space… not having to worry about the people above or below them making a racket all night. You can decorate and personalize the house however you wish, even offering gift baskets or treats upon arrival. Most rentals can cover the mortgage payment with just one week of renters. This leaves the rest of the month as a profitable time. You could even choose to use the property yourself!
The mobile home market can be very profitable. With the lower cost of homes, it is a niche most anyone can get into. You have to be conscious of different kinds of repairs, as well as new expenses such as lot rent, but all and all, it can be a great niche for Richmond investors!
Mobile Home Parks
Instead of investing in mobile homes, some investors choose to invest in the entire park. Collecting lot rent from several tenants each month will easily generate substantial profits with very little overhead. There are things to maintain such as landscaping and common areas, but overall, the amount of work needed to be done is very low. You will need to have great liability insurance in place to help you avoid any lawsuits that arise from people being injured on your property.
Land is often overlooked as it doesn’t have the same appeal or excitement as that of a property with an actual structure. It can seem boring and not profitable, however, this is exactly how you can cash in. Seeing as there is less interest in land, you can buy a lot for an excellent price and hold until there is more demand for it. Depending on the location and zoning, you may also be able to lease the land out. You could use it as parking for special events or even hunting land if the parcel is big enough.
Agricultural land can be an excellent investment for the right person. You can see profits both on the appreciation of the land as well as a percentage of the profits from what is being farmed. Many farmers rent land, so buying near other farms is a big plus. Also, if you choose to sell, you will have likely buyers located nearby,
Distressed properties are owned by people who can no longer take care of them. Whether they can no longer afford the mortgage or the property needs work, distressed properties can lead to big profits. Patterson Property Solutions works with distressed sellers all of the time, creating win-win situations that will benefit them, us and you as well! We pay great prices to people who need to sell quickly. We make the process convenient for them which in turn allows us to purchase the property below retail. They save on commissions and fees, and we save on the overall price. In turn, we resell these properties to fellow investors at excellent prices.