These days, more and more people are building a side hustle to supplement or eventually replace their traditional income, and we’re here to tell you that creative real estate niches should be on your radar as a golden investment opportunity. Real estate offers some exciting ways to earn a return on investment. By branching out with your investments, you can not only add more revenue streams but also the added security against an economic downturn—if one sector starts to fall, the others can carry you through. In this post, we take a look at Three Creative Real Estate Niches to Know About in Arizona.
1) Self-Storage
Self-storage properties are just one of the real estate niches that investors like you should know about in Arizona. Savvy investors are taking advantage of this profitable business with operating costs that generally run very low. Another benefit of self-storage properties are the additional income streams that can be added—think selling boxes, moving supplies, locks, insurance, and other products or services that combine well with the moving industry. A number of local real estate investors are getting in this business model, including some of our team. We know the Arizona real estate market and can help guide you to the best location for this enterprise.
2) Mobile Home Park
Mobile home parks prove another one of the interesting and profitable real estate niches that to know about in Arizona. Cash-on-cash returns are a metric used to evaluate an investments profitability, measuring the net income against the initial cash investment and mobile home parks average of earning back about 20 percent of your investment each year. That’s pretty impressive. Tenants in mobile home parks own and maintain their own units and pay lot rent and tend to stay in place much longer than tenants in more traditional rentals. As Arizona locals, we know areas where mobile home parks tend to provide a bigger return. Or, if you’re thinking about building a park from the ground up, we have lots of pieces of vacant land with good road access that could be an ideal place to establish a new mobile home venture.
3) AirBnB
If you own real estate with a home already on it, AirBnBs offer a great option in the world of real estate niches to know about in Arizona. Advances in technology help investors take advantage of online services with user friendly apps that provide travelers and real estate investors a platform upon which short term rentals have become a streamlined process, with checks and balances protecting both parties. Keyless entry and other inventive methods have evolved to provide the privacy and social distance that are now the norms in travel lodging. Investing in Arizona real estate to use for short term rentals can provide high returns. Because tenants are short term, spending little time in the unit, you save money because there tends to be less wear and tear overall. Of course, it’s important to focus on the location of your AirBnB investment so that you are not concerned about bookings. Professional buyers like those at Southwest Land Deals can help you zero in on the right property in Arizona to suit your AirBnB investment strategy.
With so many real estate niches to know about in Arizona, why not explore the possibilities with experts who know about them all, the team at Southwest Land Deals. We live, work, and play in Arizona. We love to help people learn about real estate and what it can do for them. Call Southwest Land Deals at 480-442-7787.