Real estate investing is 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 COLUMBIA
1. Land
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, your rental income is almost 100% profit.
The land is extremely easy to maintain. Routine landscaping and clearing are usually the only required costs. Property taxes are low, and the potential to make a great income is high. Before purchasing land, learn about the area in which you wish to invest. What are the plans for the area? You don’t want to buy with one intention, only to find land in the area is currently being 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 having 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 oftentimes 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. Investing in mobile homes presents a unique and lucrative niche in the real estate market. This particular sector offers several advantages, making it an attractive option for investors seeking low competition and high returns. One key advantage is the lower barrier to entry compared to traditional single or multi-family homes. The initial costs for purchasing mobile homes are generally more affordable, and the renovation and flipping expenses are significantly lower.
Mobile homes typically require less intensive repairs compared to traditional houses, simplifying the renovation process. This aspect not only reduces the financial burden on investors but also makes the entire investment more accessible to those with limited experience in real estate. Additionally, the market for mobile homes often provides opportunities to find excellent deals from individuals looking to relocate quickly. This motivated seller dynamic can result in favorable purchase prices, further boosting potential returns.
Another compelling aspect of mobile home investments is the increasing popularity of smaller, more efficient living spaces. As people recognize the benefits of compact living, the demand for smaller homes, including mobile homes, is on the rise. This trend enhances the potential for finding buyers, as the market for smaller, more affordable housing options continues to grow.
Flipping a mobile home typically requires less time and effort compared to a traditional single-family home, making it an attractive option for investors looking for quicker turnaround and profitability. While mobile homes may not have the glamour associated with high-end real estate, the potential for substantial profits is evident when approached strategically. In essence, investing in mobile homes and other alternative housing options represents a savvy choice for those looking to capitalize on a niche market with significant financial rewards.
3. REIT’s & Investment Clubs
REITs (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, and then, along with many others, you will have the ability to purchase shopping malls, apartment buildings, and even skyscrapers. REITs 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.
Real estate investing stands as a lucrative avenue for generating supplemental income, and the trend towards unconventional or niche property investments has gained momentum due to their potential for higher returns and lower competition. In COLUMBIA, three notable examples of such niche investments are highlighted. Firstly, investing in land, often underestimated, can prove visionary, with opportunities for development or subdivision that others may overlook. The versatility of land use, such as leasing for parking or storage, can yield almost pure profit due to low overhead costs. Mobile homes, the second niche investment, offer low competition and high returns, making them an attractive option with lower entry barriers compared to traditional housing. The simplicity of renovations and the rising demand for efficient living spaces contribute to their profitability. Lastly, Real Estate Investment Trusts (REITs) and investment clubs provide a collective approach to property investment, allowing individuals to pool resources for ventures ranging from shopping malls to skyscrapers. Each option offers a unique path for investors to explore, and our team is ready to assist those interested in pursuing these niche property opportunities – feel free to contact us at 803-670-8355.