Washington Co., WI – There’s a lot of attention in the media about cryptocurrencies, the stock market, virtual spaces, and what the next biggest game changer might be. But what about real estate? Is that on your radar?
Real estate is what everything is built on. It’s been around since man started living in caves. With so many different options it can be difficult and overwhelming to get started.
Let’s fast forward a little bit. You’ve decided you want to invest in real estate, and you have the means to buy one property. Here’s a breakdown of property types and how they might align with your goals.
Vacant Land – If you’re less concerned about cash flow and are looking for a place to park cash and lean on appreciation, then land (especially farmland) should be on your list. This is a great property especially if you’re a cash buyer. Farmland will have some of the lowest yearly property taxes, thanks to use-value assessments. You can also rent out the farmland for some cash flow without having to maintain multiple tenants. Most farmers are also stewards of the land and keep it well maintained. The future use of the property may change as well, allowing for larger lots or subdivisions, which should really increase the appreciation overtime.
Multi-Family – Everyone needs a place to live and multi-family rentals are a great option. I usually recommend 4+ units under one roof. You will have vacancies, so with more units there’s a less chance you’ll be stuck paying a mortgage payment in between tenant turnover. The extra money that comes after paying all the bills is yours and you can use it for whatever. Of course, I’d recommend using it to buy another property and build your portfolio. You also have all tenants at one building, cutting down on the time and travel to maintain it. Making improvements over time and charging market rents will quickly appreciate the value of the property.
Commercial/Mixed – A lot of what I mentioned about Multi-Family can be said about commercial and mixed-use properties, so I’ll keep this one shorter. The main difference is your working with business owners. Unfortunately, businesses can close their doors for good. And, as seen with COVID, it can happen suddenly and be devastating. The space you have will also dictate the type of business, which can be very limiting to find a tenant. BUT you can also have great businesses that are run by great individuals and help them become fabrics of the community.
In summary – I hope this helps narrow down some of the possible routes you can go if you’re considering buying some investment properties. As a rental owner myself, I’d be happy to answer any questions you have. My phone number is 262-305-7494 and email: al@landandlegacygroup.com
Al Wisnefske
Broker/Owner | Land & Legacy Group LLC
Al Wisnefske is the Broker/Owner of Land & Legacy Group and has been named a Top 500 Broker by Milwaukee Real Producers. His #1 philosophy is: “Relationships over Transactions.” Through his LEGACY Process, he helps rural property Buyers and Sellers build and sustain their legacies. This has provided him and his company with numerous raving fans. He is a multi-million-dollar producer specializing in land, farm, and country home sales in Southern Wisconsin.