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Investing in Real Estate: The 4 Property Types You Should Know

Thinking about investing in real estate? Before you dive in, it’s crucial to know that it’s more than just buying a property and gaining value over time. There’s a certain nuance to choosing the right type of property for you. Not sure what options are out there? Here are the 4 you need to know about.

Residential Properties

Home exterior shot

If you’re a beginner when it comes to investing in real estate, buying a residential property might be a good option for you. This category includes single family homes, condos, townhouses, or multi-family homes. One of the best benefits to investing in a home is the flexibility it gives you. There are many ways to get a return on your investment, especially if you keep an eye on the housing market.

There are two main strategies investors often use when handling residential properties. The first is to buy the home and wait for the value to appreciate. However, you can also generate more income in the meantime by having a tenant. This is a simple way to ease the burden of mortgage payments until you decide to sell. Many investors also buy multiple properties in the same community—this makes it easier to maintain them all.

Commercial Properties

Investing in real estate commercial buildings

Tackling commercial properties is recommended for more seasoned investors, but the payoff is certainly worth it. These properties are often places of business, such as restaurants, shops, or offices. By purchasing a commercial space and renting it out, you can generate quite a bit of steady income.

What makes commercial investing more difficult than residential? They almost always cost more and require a more comprehensive lease agreement. In fact, many banks might not even give you a loan without already having a tenant lined up. Although there are a few more factors to consider with commercial properties, it’s often worth it to make a larger investment.

Industrial Properties

Warehouse interior

This is a category that not many investors have considered. Industrial properties are quite varied, but they generally include warehouses and places for manufacturing. Although they’re part of a more niche type of investment, industrial properties have some pretty surprising benefits that you might not know about.

What makes these properties different from commercial ones? Industrial buildings are often even more expensive, but they also yield significantly higher returns. Manufacturing companies also have lower turnover rates compared to retail stores, so it’s less work for you in the long run.

Vacant Land


Investing in vacant land can be a tricky process, but it also requires the least amount of time and money. If you’re considering buying a plot of your own with the intention of making a profit, location is everything. In fact, you can make a pretty penny if you invest in a property that’s on the site of a future development.

Using your vacant property as farmland can also be lucrative, and it’s the only guaranteed way to generate passive income. Before you invest, be weary of dealing with taxes, utilities, and other issues that might arise. However, if you monitor the market, it’ll be easy to sell at the right time and make some extra cash.

Want to Learn More About Investing in Real Estate?

Investing in real estate doesn’t have to be hard when you have the right experts on your side. If you’re thinking about buying an investment property in the Erie area, Marsha Marsh Real Estate Services is here to help. We have years of proven experience with all types of properties and even offer management services after the sale. Just give us a call to discuss your options!