Long-Term Rentals: The OG for Residential Investment Properties
Annual rental properties are the tried and true, “isn’t ever gunna let you down” residential investment properties. Often, we see this type of real estate investment as a great fit for those who are in it for the long-haul. Typical investors of this type are often looking for a place to put their money and place a tenant for years to come. This, of course, creates passive income while allowing the property to gain equity in the meantime.
Types of Annual Rentals
In the real estate world, residential properties with one to four units are considered residential, which qualifies for residential financing whereas residential buildings with 5 or more units is then considered multi-family which is categorized as commercial property. The following types of buildings are considered residential real estate investments properties:
- Single Family Homes
- Duplexes
- Triplexes
- Fourplexes
Other Way to Generate More Income with an Annual Rental Property
Many investors with these types of properties start by immediately fixing the property in order to charge tenants more rent right away. As the property’s value increases, so does the tenant’s rent. At that point, the investor puts in the money, the property gains appreciation and equity, and the investor can pull from that and invest in other areas.
