Usually, real estate investors get their start by buying single family properties. It is usually the easiest way to get started. It is also usually the easiest type of property investment to get financing for. Beginning investors can also getting creative with the financing to buy a property. Purchasing single family properties is beneficial because it gives the beginning real estate investor much needed, real world experience, and at one property, it is not too much for the beginner to handle.

It is also not out of the ordinary for new investors to consider buying investment property to live in the property for a few years to get the experience of owning a house. This not only gives the new investor valuable experience, but it also has tax benefits to the investor once they decide to sell the property.

Multiple Unit Properties
The next step for the aspiring real estate investor is multi unit properties. These are also known as duplexes, triplexes, and fourplexes. These type of investment properties are appealing popular because of the reduced risk to the investor. The problem with single family properties is vacancies. If you don't have a tenant in a single family house, you have no cash coming in. If you have multi unit houses and you have a vacancy, you will still have cash flow. Another benefit to these properties is that loans for these investments are still considered residential. Residential loans are more simple for the investor to acquire than commercial loans. They are easier because usually the down payment is smaller and the loans don't take as long to acquire.

Apartments as Investments
Apartment complexes can be a fantastic investment if the property investor does their research. These properties can either provide you with a lot of cash flow, or they can be a money pit. It all depends on the homework done by the investor. If the investor has done his research he should be able to see if an apartment complex is a worthwhile investment. Investors must look at vacancy rates, among other things, to make sure that they will have continual positive cash flow.

Obtaining financing for apartment complexes should also be considered. Loans for larger properties like apartment complexes are considered commercial loans. So generally, it will take more time to get the money, and you will need a larger down payment for the bank to feel comfortable in loaning the money.
Real estate investing is potentially a great tool to increase your income. If done properly investing in real estate can create more wealth than any other investment. The key is to decide on what path you want to take to increase that wealth. Do you want to begin small with single family homes, or do you want to begin big and invest in multi unit homes or even apartment complexes? Do your research before jumping in. If you have done your homework properly, you could reap big rewards in the near future.