Commercial House Types-Which Just one Is the greatest

What business ?cbd hemp oil benefits home styles need to you buy? You should think about the professionals & cons of each property type, as well as, have a good understanding of your investment objectives and your experience. These factors will help lead you to your ideal industrial assets.

Listed below are the most common industrial home kinds.

Apartments/Multi-family Apartments or multi-family buildings are usually the first choice for new industrial investors. Apartment management and financing is very similar to residential, and so new investors feel more comfortable with them. The main disadvantage with apartments, is that they are management intensive.

In order for an apartment to be considered business home, it must have 5 or more units. There are numerous sub-types of apartments: Low-Rise Garden Apartments

Mid-Rise Apartments

High-Rise Apartments

Student Housing

Military Housing

Townhouse Style

Co-op

When you are looking at properties to purchase, pay close attention to the location and general market for that area. You will want to avoid properties that are located in economically depressed or seasonal areas. Also, the home ought to have acceptable aesthetic qualities to be competitive with market standards and have a minimum occupancy of at least 85%.

What if the assets you are evaluating has inferior physical characteristics or is in an economically depressed area?

You may have a higher interest rate, higher reserves and tighter underwriting constraints.

Mobile Home Parks

Mobile homes can be a wonderful investment, especially if you own the land and sell off the mobile home. You're just renting dirt at that point! If you're not familiar with mobile home investing, you need to read "Deals On Wheels: How To Invest in, Sell And Finance Used Mobile Homes For Big Profit And Cash Flow" by Lonnie Scruggs. This book is a gem! Lonnie explains how to buy and sell mobile homes on a note. His presentation is very basic and understandable.

Now back to mobile home parks. Mobile Home parks are rated as 1 Star, 2 Star, 3 Star, 4 Star, and 5 Star. The Star ranking is based on the conditions and amenities of the park. A 3 Star park usually has a mix of single and double wide homes that are in good condition. The park is attractive and offers some amenities.

A 4 Star mobile home park usually only has double wide homes that are skirted and in good condition. The homes will have concrete patios or raised porches.

A 5 Star mobile home park can be characterized as having deluxe accommodations, with a wide range of amenities and services. The homes are usually set back from the curb with paved streets, sidewalks, street lights and signs. The park is located in a desirable neighborhood and accessible to retail and community services. The homes are late model doublewides and modular homes in excellent condition.

The mobile home park really should have at least 85% occupancy and be located in desirable areas. Also, be cautious if the park has too many homes for sale (more than 20% of total pads) or more than 20% of total pads are rented homes owned by the park.