1. Real Estate Investing For Beginners - Part 2, Types Of Properties
For New Real Estate Investors
Not all real estate property types may be appropriate for new real estate investors. There are many
factors to consider when making the decision to add real estate to an investment portfolio.
When deciding on a residential real estate investment strategy, some options for new investors to
consider include:
Rental units
Rental units can be considered both long term and short term investments. Types of properties that
may be considered for this category would include:
• Detached single family homes
• Attached single family homes
• Multi-Unit properties
• Condos/Townhomes
Being a Landlord
Not everyone has either the desire or inclination to be a landlord. Dealing with tenant and property
issues can be very stressful and time consuming. One way to minimize the impact of being a landlord
is to hire a professional property management company.
Hiring a professional property management company has several advantages:
• Allows owners of rental properties to be 'shielded' from dealing with tenant and property issues
directly.
• Provides a buffer allowing the owners to maintain a hands off approach to managing their
properties.
• May provide a less stressful experience
• Offers the ability to purchase real estate investments not immediately local to the investor.
• Provides a single contact point for all issues regarding the investment property.
Professional property managers are well versed and prepared to manage tenant and property issues
as they arise. They will typically take care of all issues relating to the property.
Many offer their services at reasonable prices and rates while others can be quite expensive
depending on additional services being offered. You may expect property managers to provide the
following services:
• Advertise properties available
• Recieve applications for tenancy
• Perform Credit and Background checks for applicants
• Recommend rental pricing
• Pay maintenance and/or repair bills for the owner
• Send monthly statements and rental income (Less any outstanding bills. Typically these are

2. deducted and itemized from the rental income and will appear on monthly statements)
Flipping or The Bane of New Investors
Often times, new investors in real estate are overly anxious to 'flip' properties and make a significant
profit. Rumors of how friends or acquaintances have made allot of money is often the incentive for
'flipping'.
The real estate market fluctuates greatly. Yesterdays great 'flipping' market may be (recent market
trends as an example) tomorrows 'Hold on to it' market. While this is certainly a desirable quality of an
investment property, it is and should not be the primary consideration for new real estate investors.
The competition for this type of real estate investment is fierce and occupied by seasoned,
experienced professional builders and investors
Property Types
Let's discuss the various property type which may be considered by new real estate investors.
The selectionof the type of real estate property for investment purposes may be based on several
factors.
These factors include:
• Financial considerations - How much can you afford?
• Availability of properties - What types of properties are available?
• Location - You've heard this one a thousand times - Location...Location...Location...
• Income potential - Does the property in question match your real estate investment strategy?
Detached and attached single family homes
Single family homes whether attached or detached are often the first real estate property type new
investors seek. In many areas, they offer the most availability of any property type.
Prices obviously vary greatly with these property types as well.
Multifamily Properties
Apartment units such as duplexes and triplexes should be considered as a viable option for new real
estate investors.
Many investors and real estate professionals use apartment buildings as a point of entry to a portfolio
of commercial real estate holdings and to build their equity before moving on to larger commercial
real estate investments.
Duplexes, triplexes and fourplexes are two, three and four-unit buildings that may or may not be
owner occupied.
Summary
Selecting an appropriate type of real estate property in which to invest is a primary consideration for
all serious real estate investors.
Real estate investment strategies include the decision of whether or not to become actively involved
in the management of the property. Professional property managers offer alternatives to assist in a
"hands off" approach to owning residential income property.

3. Knowing there are options on the various types of properties to purchase as investment may provide
new real estate investors the information needed to make that final decision to become a real estate
investor.
End of Part 2
encina real estate