Unearthing the Treasures: Hidden Gems in Multi Family Investing Pt1

Unearthing the Treasures: Hidden Gems in Multi Family Investing you NEED to know! (Part 1 of 3)

So, you've been bit by the real estate bug too, eh? Over the last couple years I've learned and grown to love the incredible potential for wealth generation and of course, the allure of "passive" income. I don't blame you for having your interest piqued also! Here's some things that were taught to me earlier on that I thought was well known but are now appearing to be somewhat of "Hidden Gems". To keep it short I'm going to break this up into three parts.

Gem #1 - Unconventional Property Types
Think outside the box!

You might be familiar with the usual suspects - Duplexes, Triplexes, Apartment Buildings and even Hotels! There's a lot more to investing in real estate that isn't so commonly talked about though.

Mixed Use - Pretty much what the name says, a split between commercial and residential. 
Think of a deli with a suite off the back or a bowling ally with a few apartments up above. Having a long term tenant like a lot of commercial tenants are with the added security of not having to worry about residential tenancy laws it's a fairly risk free investment - If you buy right!

Mobile Home Parks (MHP) - Long over looked by the average investor but they are more affordable than an apartment typically and always have a high demand (Especially in lower income areas). MHPs are on one large piece of land and have some shared common areas like playgrounds or laundry rooms. The MHP can either own homes and rent them out or they can rent out a "Pad" to someone who has their own mobile home. They can hook up to power and pay for their use and pay a monthly pad fee. Besides rental income there's potential for more streams of income for the investor like coin op laundry, which only benefits your bottom line even more.

Co Living SpacesYou can think of these as room rentals. I don't see many of these organized by a landlord where I'm from but they're pretty common in bigger cities. Not only is it going to be more affordable than renting the full space yourself it also offers a sense of community - which is one of my core values. You get the privacy of your own room alongside shared common areas like kitchens bathrooms and rec rooms. By appealing to a growing market, these type of investments can provide a steady income stream and capitalize on the changing dynamic of the rental market.

Three basic types of unconventional property types that the average investor doesn't think of using to diversify their portfolio. Storage facilities, Assisted Living Facilities (ALFs) and Casinos are also very lucrative investments that most people never consider.