13 Jun Is Specialization in Real Estate Investing Really The Way To Go? – Part 1 in a 3 Part Series
So, you are looking for a rental property to invest in. There are soooo many different things to think about, not the least of which is what kind of tenant do you want to cater to?
Or maybe the right way to ask that is “What type of landlord do you want to be”?
Do you want to be the landlord of a unit:
- That is ideal for a group of friends looking to share space and expenses?
- Geared towards a tenant with caregiver needs?
- Designed with seniors in mind?
- With the potential for a home-based business?
Naturally, how you answer that question will definitely affect the type of property you buy and how you renovate it.
Here’s another question for you.
Are you leaning towards:
|Specializing in one type of rental unit (ie student housing, vacation rental, etc)?|| OR
||Owning a variety of different types of property to add some diversification to your real estate holdings?|
Would you believe me if I told you that you could do all at the same time?
While the concept of niching the type of rentals they invest in is appealing to many, Covid-19 has taught me the importance of picking properties that will appeal to a broad range of tenants. If you only deal in student housing, the news reports of universities and colleges sticking with online courses for the first part of the year would be frightening. With all of those students staying home until after Christmas, there is the potential for a lot of off-campus student housing to sit vacant until in-person classes resume. I can only imagine how those just in the vacation rental industry must be feeling right about now! I’m sure the demand for that type of unit has dropped dramatically amid the travel bans that are likely to continue to be in place for a while.
I am so thankful that I am able to see potential opportunities that most others don’t when buying real estate investment properties. It has allowed me to design units that will appeal to a variety of types of renters.
Would you believe me if I said that I currently have a unit available that would work for any of the four types of properties mentioned above? That’s right! Here are descriptions of some of the folks who have inquired about renting this property:
1 – Three’s Company: In this scenario, we have a young couple looking to strike out on their own. Since they are new to living on their own, and the expenses that can come with it, they invited one of their brothers to move in with them. They found the idea of co-living and sharing space greatly appealing.
2 – Mother and Son: I was also approached by a mother with an adult son who is unable to live on his own due to chronic health concerns. They fell in love with this unit because it offered them both lots of independence while still allowing the mom to act as a caregiver.
3 – Looking to Downsize: I also had a call from a retired woman who was looking to downsize. The design of the unit ticked off all of her boxes in terms of any future accessibility requirements down the road but also offered lots of space for guests.
4 – Open for Business: One couple that I spoke with was looking for a space that offered the opportunity for a home-based business that was housed within the unit but still totally separate from it. They were very excited by our unit as they had not seen anything else like it on the rental market.
Now, I’m sure you are probably trying to figure out how I was able to attract all of these different types of tenants with the same unit. The answer my friends is really rather simple: FORWARD THINKING.
When looking for an investment property, you can’t just look at what is in demand now. You have to look towards the future and see what might be in demand down the road. This is not always an easy task but trust me when I say that it is well worth the time and effort to do some homework ahead of time!
You are probably also wondering HOW I did this. I will say it was a very exciting project that used some pretty innovative design techniques. If you want to learn more about this unit and get Early Bird Access Part 2 of this series where I discuss the design concepts that I used, head over to The Construction Coach / Investor, and sign up for our newsletter. While you are there, feel free to book a free 20-minute phone call with me. It is a great first step on your path to building a retirement fund using Real Estate Investing.
The Construction / Real Estate Investing Coach