The different types of investment properties that real estate investors consider vary in many different ways. We’ll identify the different types here and briefly discuss each one. The basic types of investment properties include retail, office, apartment, mixed developments, and hotel/motels.

Retail properties include freestanding buildings and shopping centers. A freestanding building is one where it stands alone, not connected to any others. Shopping centers range from strip malls to super regional malls with many stores located in one area.

Office properties can be small (one, two or three tenants), office parks where many building exist serving different businesses, or high rise complexes, where many tenants are located in one building. Most will be located in downtown urban areas or in or near suburban towns/developments.

Apartments range from multifamily homes or “mother-daughters” to commercial units. A commercial apartment building will consist of at least 5 units. The larger the apartment complex, the higher the need for on-site management of the property.

Mixed developments consist of a combination of residential apartments, houses, and condos with office space and retail stores. Many communities that are growing at a fast pace have developers who are maximizing the feeling of community by mixing all different types of structures, creating small neighbhorhoods with all the essential aspects of small town, such a restaurants, entertainment, jobs for the local public, and of course, shopping.

Hotels and motels require excellent management if they are to be successful. Their locations near airports, business parks, inner cities and other active areas, help to keep their doors open. Their failure rate is relatively high, and must be managed correctly in order to remain in business.

These are the basic types of investment properties. The single family home is, of course, a consideration as well as other types of investments; however, the properties featured in this article are appealing due to their income potential.

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