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Your Investment Guide to Types of Real Estate Property in Memphis

HomeRiver Group Memphis - Tuesday, January 11, 2022
Property Management Blog

The real estate market in Memphis is booming right now, so you'll want to get in while the getting's good.

But, what options are out there when it comes to investing in property? Read on to learn about the types of real estate property you can invest in in Memphis.

Residential Real Estate

Residential real estate is real estate that people live in. Residential properties can be single-family dwellings, or they could be multiple occupancy units. To count as residential real estate, a property must have fewer than five individual units. 

Of course, there are things you need to consider when you invest in residential real estate. You'll need to have appropriate property management to find tenants and make sure the property is properly maintained.

The cost of investing in residential real estate will differ based on the neighborhoods you choose. Some of the most popular neighborhoods for residential real estate in Memphis right now include Orange Mound, East Memphis, Whitehaven, Midtown, and High Point Terrace.

When you're buying residential properties, it's often helpful to buy several in the same area. This will help make it less complicated for you to manage your properties effectively. However, you'll still want to ensure that your investments are adequately diversified, so that you get the best investment returns possible.

Residential real estate is also versatile. You can flip houses quickly for a profit, try out house hacking, or look into short-term rentals.

Commercial Real Estate

On the other side of things, commercial real estate is a property that's used for business reasons. This could be a building that houses different shops.

Leases for commecial real estate tend to be longer than residential ones, so you won't have to hunt around for new tenants regularly. But, that also means you won't be able to raise the rent as often, since you'll be legally locked in. Sometimes, commercial leases also include property taxes, which can help save you even more money.

It is, however, a lot more difficult to invest in commercial real estate as opposed to residential real estate. It's harder to gauge whether a property is a good investment, particularly if it's currently vacant.

There are also mixed-use properties, which usually combine both commercial and residential zoning. This can help give you some stability in your investing.

Industrial Real Estate

This particular type of real estate is used for industrial purposes. These could include manufacturing plants, production facilities, research labs, and more.

Industrial real estate, as a whole, tends to be cheaper than other forms of real estate. Industrial real estate can also be rezoned and redeveloped, which means you can add value to the investment.

Start Investing in These Types of Real Estate Property

There are so many options when it comes to types of real estate property in Memphis, so you'll just need to decide what the right choices for you are. 

Do you need help managing your investment properties in the Memphis area? Contact HomeRiver Group Memphis today.