Different property types offer different returns, risks, and involvement levels. Here are the main categories.
Residential Rentals
Single-family homes are the most accessible—easier to finance and manage, but 100% vacant when your one tenant leaves. Multi-family (2-4 units) offers multiple income streams and can be financed with residential loans. Apartments (5+ units) require commercial financing but offer economies of scale.
Other Property Types
Vacation rentals can generate higher income but require more management and face regulatory risks. Commercial (retail, office, industrial) offers longer leases but requires more expertise and capital.
REITs let you invest in real estate through the stock market—completely passive but no control. Syndications pool investor capital for larger properties.