Nontraditional Real Estate Investment Ideas for Those Trying Something New
The real estate market has become more and more competitive, especially with many multinational investment firms buying up single-family homes. Traditional real estate investments, such as residential, retail, industrial, and office spaces, have given way to nontraditional real estate investments.
Vacation Rentals
Many new investors are renting out houses or rooms for those on vacation. However, today, vacation rentals are not just hotel rooms or beach houses, these rental properties also encompass the weird and wacky. The modern online marketplace for lodging includes homes built out of caves, covered wagons, and old roadside attractions. For example, people are willing to spend $200 a night to sleep inside a giant, fiberglass potato in an Idaho farm field.
A portfolio of oddball properties can be snapped and renovated into highly profitable vacation rentals. Of course, any property you purchase must be in a safe neighborhood and close to popular travel destinations. However, this type of real estate investment is becoming increasingly popular.
RV Parks
The younger generation has embraced the RV lifestyle in a big way. It provides a way to see the country and get out of the city while working remotely. In fact, RV manufacturers are having a hard time keeping up with the demand, and national and state parks are at capacity. All of those RVers need a place to stay and that’s where RV parks come in.
An RV park broker is a real estate agent that specializes in RV parks and campgrounds. There are many aging RV parks around the country, ready for new ownership. Since they are usually in out-of-the-way rural areas, they are often overlooked by traditional real estate investors. However, it’s a great opportunity for those who are interested. While they do require some maintenance, they often require a lot less care than a hotel or house would. Also, this type of real estate is likely to thrive even during times when the economy is struggling.
Cell Towers
Inaccessible or mountainous rural property can be purchased quite cheaply because it often has low demand. While this type of land is often worthless for residential or business use, it can be rented to a phone company for a cell tower. Everything is going online and cell providers are constantly building out their networks.
This type of investment property should be within sight of a town or a major highway in order to be of value to a wireless carrier. Also, the rent you can demand varies wildly and depends on location, population density, and any limitations on construction.
If you are an investor of modest means, in today’s real estate environment, it pays to think outside the box. Consider these and other nontraditional real estate investment opportunities when you’re looking to get started.
