Residential Real Estate Investing
What is it?
Residential real estate refers to properties intended for people to live in, either by owners or tenants. These properties are often the first step for many investors and offer a broad range of options depending on personal goals and budget.
Here’s a breakdown of the main types:
Single-Family Homes
Standalone homes designed for one family. These typically don’t share walls and may belong to an HOA that manages amenities like pools or parks.
Condominiums (Condos)
Individually owned units in a shared building. Owners share access to common areas and pay association fees to maintain them.
Townhouses
Multi-floor homes that share one or two walls with adjacent properties. Considered single-family by most lenders but often part of a community with shared amenities.
Co-ops
Instead of owning a unit, residents buy shares in a corporation that owns the property. Co-op residents have a proprietary lease and pay monthly maintenance fees.
Multi-Family (2–4 units)
Small buildings with separate living spaces. Still considered residential, these properties offer a way to generate rental income while possibly living in one unit.
Vacation Homes
Second homes used seasonally—such as beach houses or mountain cabins—that can also serve as rental properties when not in use by the owner.
Benefits in Investing
Stable Demand – People always need a place to live.
Easier Entry Point – Lower capital requirements than commercial properties.
Tax Advantages – Deductions on interest, depreciation, repairs, etc.
Passive Income – Generate consistent cash flow through rentals.
Appreciation – Over time, property values generally rise.
Final Thoughts
Residential real estate is a great starting point for investors seeking long-term stability and manageable risk. Whether you’re house hacking, renting, or flipping, residential assets provide flexibility and accessibility to a wide range of investors.