Are you looking to invest in a real estate property but can’t decide which type to splash your cash on? You’re not alone. Choosing the right type for your needs and budget can be difficult with many options. However, one thing most investors have in common is that they’re looking for a high ROI. So, the question remains, what types of properties offer the highest returns on investment?

In this post, we’ll share our top residential, commercial, and industrial property picks.

The Best Real Estate Investments to Consider for the Highest Returns

1. Apartment Buildings

Apartment buildings are the most popular type of real estate investment. Depending on their size, location, and amenities, these properties generate more monthly income than detached houses. Plus, due to the rising living costs, apartments have become the go-to choice for most residents. So, they remain high in demand, even with high turnover.

2. Tiny Homes

Tiny homes have become one of the most innovative solutions to counter high rents and living costs. Popular options include single- and doublewide mobile homes, arched cabins, tiny apartments, granny pods, yurts, and houseboats. These properties are much cheaper to procure and can generate decent positive cash flow every month.

3. Vacation Rentals

Vacation rentals, including lakeside cabins, beach houses, lodges in tourist destinations, and even Airbnb apartments in major cities, offer excellent ROI due to several reasons. For starters, they have a similar operating model to hotels, meaning you charge tenants daily instead of collecting monthly rent.

Secondly, depending on the location, size, and quality, you can generate a higher monthly income even if you don’t keep it booked throughout the month.

4. Retail Stores

Retail stores and other commercial spaces might be expensive to procure. However, these spaces generate more income per square footage than most residential properties. So, you can expect a high return on investment if you purchase a mall, store, or factory outlet.

5. Self-Storage Units

Self-storage units are becoming one of the most popular types of investment properties. They’re much cheaper to procure and are available in different sizes. In the age of eCommerce and downsizing, these units are excellent for storing unused belongings (furniture, clothes, documents, etc.) and inventory. According to IRELIC, self-storage facilities have an ROI of 41%. This figure is considered one of the highest in the market.

Wrapping Up

In the modern age, you can purchase various investment properties that provide a high return on investment. However, the above properties are the most recommended picks for most investors. Of course, before buying any property, you should research thoroughly and seek guidance from a real estate agent to learn the pros and cons of each option.

For more interesting reads related to real estate investing, tune into CHRE right away. You can also explore our vast investment property options in Rio Grande Valley.