With the housing market back on the rise, buying an investment property is no longer as big of a risk. Lower mortgage rates are making homes more affordable and investors are taking advantage. If you are looking to invest, the first step is deciding what type of property will give you the largest return on investment. There are many factors to consider in making a smart purchase.
For example, between a condominium and a single-family residence, operating costs for a condo are generally easier to approximate due to association fees. With single-family homes, expenses may be more unpredictable. The properties will also draw different types of tenants. Renters looking to stay put for an extended amount of time tend to rent single-family residences over condos. These long-term leases are generally better for property owners.
The most important thing to consider is the location you are purchasing in and what that market currently looks like. Location will ultimately determine which properties are more popular and which renters in the area are interested in.