Types of Investments

Residential properties are the most common entry point for new investors because the concepts are familiar; most people understand what makes a home desirable. This category includes single-family homes, condominiums, townhouses, and small multi-family properties like duplexes, triplexes, and fourplexes. For financing and legal purposes, residential investment is typically defined as properties with four or fewer residential units. The primary goal here is usually to generate rental income from tenants while holding the asset for long-term appreciation. Because housing is a basic necessity, residential investments tend to stay relatively stable even during economic downturns, though they require significant hands-on management or the hiring of a property manager to handle tenant issues and maintenance.