Real estate investing in a great way to generate extra income. Many people are opting for niche property investments… investments you don’t see every day and don’t immediately expect to be high-income producers. However, niche markets offer less competition and sometimes higher profits.
Find a few of our favorite examples below.
Niche Property Investments: 3 Unconventional Choices in Scranton / Wilkes-Barre
Land is often overlooked because frankly, it isn’t very exciting. Who would want to pay money for a patch of dirt? Most often, the people buying are visionaries. They see potential in a piece of land that others have overlooked. Maybe the land is in a great location, so building and improving upon it is a surefire investment. Or maybe subdivision is possible. Dividing a large parcel of land, and selling off smaller lots can be highly profitable.
Another option for land investment would be to leave the land as-is and lease it out for parking, storage or recreational use. Because of the low overhead, any rental income you make is almost 100% profit.
Land is extremely easy to maintain. Routine landscaping and clearing are the usually the only required costs. Property taxes are low, and the potential to make a great income is high. Before you begin purchasing land, learn about the area in which you wish to invest. What are the future plans for the area? You don;t want to buy with one intention, only to find land in the area is currently be rezoned. Work with a realtor who specializes in land and who can help you get the returns you are after. They should know what is going on in the local market and be able to help you find great land deals.
2. Mobile Homes
Mobile homes are a great niche investment because they offer low competition and high returns. Getting started with mobile homes is much easier than coming up with the cash to purchase a single or multi-family home. Costs to purchase, renovate and flip are all much less expensive comparatively. Fixing them up is usually pretty simple, and doesn’t require the intense repairs a regular home would. You can often times find great deals on mobile homes from people who want to relocate quickly. And buyers are everywhere. Smaller homes are in as people are realizing how much more efficient a small space can be. Flipping a mobile home often takes much less time and work than a single family home would.
While it might not be the most glamorous real estate to own, investing in mobile homes and other alternative housing, offers big profits when done right.
3. REIT’s & Investment Clubs
REIT’s (real estate investment trusts) are formed when many people come together to form a trust. You can research which you would like to invest in, then, along with many others, you will have the ability to purchase shopping malls, apartment buildings, and even sky scrapers. REIT’s can be composed of thousands of people and can be impersonal. However, when you choose the right one, you have the potential to see excellent profits. Research before you invest to see how the trust has performed in the past.
Similarly, an investment club is a group of people who pool their money to invest in real estate. These clubs are much smaller, typically no more than 20 people, The clubs are much more hands on, with all members playing important roles and doing their part to pull their weight. Investments are voted on as a group, and profits are typically divided proportionally to what the individual has invested.