Pros and Cons of Real Estate Investment
The following tables show pros and cons of real estate investment per type of real estate investment.
| Real Estate Investment Type 1, Owning & Upgrading |
|
Pros |
Cons |
| Maximum control over real estate investment performance. |
Optimizing real estate investment can be costly and time-consuming. |
| Home is real estate investment; less money down! |
If your turnaround time is more than a year, than this is the least profitable of all 3 types. |
| Great control over when to buy, sit on, and sell. |
Stocks and stock funds annually out-perform this real estate investment. |
| Foreclosed properties make 2nd home investing even more profitable. |
Living in a dump for a long period of time if it's your 1st investment home. |
| Real Estate Investment Type 2, Lording the land. |
|
Pros |
Cons |
| You control the rent. |
Being a landlord is a full-time job |
| Monthly income delivered to your door |
Additional Health department codes, taxes, and community laws |
| Only need to keep about 80% of units occupied to be profitable (Multi-unit) |
Grounds keeping, utilities, storage, parking, upkeep, etc… All constant headaches |
| Real Estate Investment Type 3, The Limited Partnership. |
|
Pros |
Cons |
| Time enough for your own career! |
Prohibitive buy-in price |
| No tenant Headaches |
Not as hands-on as other types |
| 
