Camille Cabrera, Benzinga
Detroit, MI --News Direct-- Benzinga
Investment properties have the potential to bring in substantial funds while also appealing to an owner’s level of financial risk tolerance. These properties are purchased to generate income and are typically not inhabited by the owner. When researching the various investment properties, consider how much time and attention you will be able to commit to their maintenance and oversight. Investment properties allow you to expand your streams of income and create passive income. Examine fun creative investment properties such as haunted houses or houseboats that have the potential to expand your financial freedom at your own pace.
5 Weird But Cool Investment Property Ideas
Investment properties are much more than the commonly associated rental homes with white picket fences. For more conventional investment properties, consider working with a property management company to oversee the property in an organized manner. However, if you crave a more creative investment property, contemplate a stream of income that can be both engaging and profitable by investing in weird, but cool options such as haunted houses and art galleries.
1. Tiny Houses
Tiny houses are typically more affordable to purchase than larger-sized houses which can make them an attractive option for people interested in buying their first investment property. The market for tiny homes has increased in demand over the years and provides an avenue of opportunity for a creative investor. For example, an interested investor has the ability to craft an entire neighborhood of tiny houses. If such a project sounds too ambitious, consider the convenience of adding a tiny house somewhere on your property and renting it out. A tiny house on your property has the potential to bring in a steady stream of cash flow while remaining convenient and accessible to you in terms of management. Before deciding to build, check the rules for Accessory Dwelling Units (ADUs) within the neighborhood.
Interested in owning a tiny house? Get started with an investment property loan.
2. Houseboats and Campers
Houseboats and campers have the potential to provide large profit margins during peak rental seasons. Consider popular vacation locations that can help boost the value of your houseboat or camper. For example, houseboats and campers near prime vacation locations or trending tourist locations have the ability to charge over $300 a night. Investing in a rental houseboat or camper can bring in impressive cash flow during peak seasons such as the summer. Keep in mind that houseboats are unlike other investments and usually depreciate in value over time. In general, houseboats and campers have the potential to draw in substantial funds when placed in the right location, properly maintained, and competitively priced.
Interested in owning a houseboat? Get started with an investment property loan.
3. Haunted Houses
Haunted houses have the capability to bring in a substantial amount of cash during the fall. Think about a prime location to draw in more foot traffic and remain in close proximity to other attractions. It’s possible to have a haunted house more than pay for itself after one impressive haunting season. It’s recommended to maximize the profits earned during the spooky season by giving yourself the longest amount of time possible to attract customers. For example, some horror events and haunted houses open as early as the first week of September.
Consider purchasing a house that has an urban legend behind it to add to the notoriety of the property when it comes time to enthrall and scare guests of your haunted house. One main perk of purchasing a house that’s considered haunted is that they are frequently lower in price than the rest of the market. Of course, there might be a few hair-raising surprises along the way at such steep price reductions.
Interested in owning a haunted house? Get started with an investment property loan.
4. Bed and Breakfast
Bed and Breakfasts remain a growing industry that focuses on serving people that are interested in short-term stays. The beauty of a Bed and Breakfast (B&B) stems from an owner’s ability to make money in a pleasant and comfortable setting by charging individuals that wish to stay the night within the house. B&Bs frequently provide a sense of intimacy and calm in a building that offers a sense of charm. This comparative advantage often allows B&Bs the ability to be easily recognizable and marketed as a unique experience. When researching potential B&Bs, think about specific sights or attractions close to the property, the unique features of the property, and the total number of guests that you are interested in housing at one time. Happy innkeeping!
Interested in owning a bed and breakfast? Get started with an investment property loan.
5. Art Gallery
If you have a passion for art, consider renting out a thoughtfully purchased and designed space to artists. The art galleries are intended to showcase artistic talent while also bringing in funds. Usually, art gallery owners obtain income by renting out a space to artists, taking a percentage of art sales, and hosting glamorous events such as galas and auctions. An art gallery in many ways is a partnership with an artist so be sure to foster a positive working relationship. One important note to recall when creating an art gallery is the importance of quality space. The gallery space should highlight and attract a specific niche of the massive art world. Keep in mind that galleries have the potential to lose money due to poor marketing or branding. Invest in promoting your brand and image to spread awareness within the local area and garner buzz before you open.
Interested in owning an art gallery? Get started with an investment property loan.
Increase Your Income with Investment Properties
Investment properties have the opportunity to be as fun and creative as you are. One perk of certain investment properties is that they can earn you money while the value of your property steadily increases over time. When purchasing an investment property, contemplate the level of time and effort that you are willing and able to commit to the upkeep and management of the property. For example, haunted houses that mainly operate in the fall will likely have different time and attention requirements than that of a bed and breakfast. Overall, investment properties can provide an alternative source of income in unconventional fashions that have the ability to accommodate a wide range of budgets.
Frequently Asked Questions
When researching interesting investment properties, combine your creativity with your financial knowledge to select the ideal property. If you have questions about a specific property or deal, consider speaking with a real estate or financial professional.
What’s the down payment for an investment property?
The general down payment for an investment property tends to vary depending on factors such as a borrower’s credit score and the specific type of rental property. A lower credit score will likely indicate that an individual will need to pay a larger than average down payment. Investment properties already have higher interest rates when compared to other types of real estate so purchasing an investment property with a low credit score might require a substantial down payment at a much higher interest rate. The reason that investment properties usually have increased interest rates stems from the understanding that people are more likely to default on loans for their investment properties before defaulting on a loan associated with their main residence. In terms of minimum down payment, it’s common to put at least 15% down. Keep in mind that putting down larger amounts for the down payment helps lower interest rates and can promote better loan terms. If possible, contemplate placing a down payment of around 20% or more to help lower the interest rates.
How many investment properties do you need in order to retire?
The amount of investment properties that an individual needs to retire depends on the properties within the local market as well as a person’s expected monthly financial needs. Examine how much you will likely need to obtain on a monthly basis to live. When calculating the number of investment properties that you will need to retire, keep in mind that passive income gained from rental properties generally decreases with standard expenses such as maintenance. In general, the market has no set minimum number of investment properties that a person needs to retire. However, a person can roughly calculate the number of investment properties needed to retire based on cash-on-cash returns compared to expenses.
View source version on newsdirect.com: https://newsdirect.com/news/5-weird-but-cool-investment-property-ideas-702854768