Investment Properties

Residential Income Properties

Investments in residential properties include single-family homes, condominiums, and other multifamily complexes.

Single-family homes
A single-family home provides the investor with a breakeven cash flow or a little income. However a vacancy for even a month can wipe out all the profit for the year.

Multifamily properties
Larger properties benefit from the efficiencies of land use and management. Because of the much larger investment required, a buyer should make a complete and detailed investment analysis.

Office Buildings

Many investors prefer office buildings to residential apartments because tenants tend to occupy the properties longer, tenant complains usually are made in business hours, and fewer collection problems occur.

When analyzing the rent rates for competitive properties, the investor should pay special attention to the services and tenant improvements included.

Small investor must analyze the office building market before committing their funds.

Commercial Properties

Many opportunities exist for small investors as well as shopping center developers in commercial properties.

Commercial properties can range from a single, one-tenant building to over a million square feet of assorted shops that display goods or sell services to the public.

Free standing store
One commercial building meant to be occupied by a single user. It is typically found near major shopping centers on major routes, and fills a specific need in the area.

Strip commercial
A string of stores with no central leasing. Because of their rectangular shape, lend themselves well to a variety of uses. They can be converted from storefronts to offices to restaurants with relatively little expense.

Neighborhood shopping center
Usually include a grocery store or a drugstore as the anchor, along with some service stores such as dry cleaners, Laundromats, or restaurants.

Community shopping center
Typically include a home improvement center or department store as an anchor, along with a supermarket and other retailers, restaurants and service companies. Centers of this type are usually managed by professional managers.

Regional shopping centers
Usually have three or more major department stores as anchors, and a large number of general merchandise retailers. A professional manager is essential to enhance the value of this very large investment.

Industrial Properties

Industrial Properties are flexible, general purpose buildings that can be adapted to the tenant’s needs. Uses in urban areas generally involve manufacturing, assembly, and distribution.

Investment in industrial property requires substantial research and carries significant risk. However, with a successful company as a tenant, an industrial property can achieve reasonable returns.

Land

The most important determinant of value for a vacant site is Location.

If land is planned for commercial use, it must have access and visibility from a major arterial road.