Look for the Best Apartment REITs with These Characteristics

Investing in the best apartment REITs can give you real estate access without all the hassles of managing properties yourself.


best apartment reits

Real estate is one of the best places to find growth in investments. It is a great place to put money where property values can increase, and developing property has a strong chance to provide more cash than you put into it. With that said, being involved in real estate investment directly can be demanding, time-consuming, confusing, and risky. That’s why we keep our eyes open for the best apartment REITs.

It is true that large profits come from places of high risk. But in the case of real estate, if you’re not willing to put all the effort required into making an investment work, there is a good likelihood that you’ll end up regretting stepping into the playing field in the first place.

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For people who are too nervous about the involvement required in direct real estate investment, REITs provide a much easier route even if you have small hesitations. You can get into the real estate market without as much money upfront or exposing yourself to the same amount of risk.

In particular, the best apartment REITs are the closest thing to a traditional real estate investment since they operate on a buy and hold strategy. The profits they provide depend on the property tied to the REITs actually being rented out and tenants paying their rent appropriately.

Understanding why investors target the best apartment REITs

Even though you don’t directly own the properties held in apartment REITs, it is the next best thing to owning high-quality property that you can rent out. It might even be better, because by owning the apartment REITs, you have none of the responsibilities of managing the properties, maintaining them, or dealing with tenants.

The best apartment REITs are profitable real estate investments without the headaches. Of course, removing the headaches comes at a cost. You don’t have quite the same upside as you could if you were to own and manage a property on your own, but getting your time back can be a considerable advantage in allowing you to turn your attention elsewhere.

Recognize the attributes of the best apartment REITs

You should target apartment REITs in the same way you would think about looking for a good property to buy and hold. You wouldn’t want to own a property that you want to rent out in an area where very few people want to rent a home.

The most obvious candidates for quality apartment REITs would be large cities with large populations, high property costs, and lots of jobs. People will be going there one way or the other, and a lot of those people will need to find a place to rent.

Another good candidate outside of the bustling cities could be smaller college towns, but these come with more complications. They are likely to have a lot of turnover in their renters, even if they have a very low vacancy rate. The type of town and the college or colleges in the area play an essential role in how plausible this kind of apartment REIT could be.

What would be the first place you would think of looking for an apartment REIT? Where else are there a lot of renters?

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When you’re buying a new house for yourself—or even considering an investment property—you should know all the tips for saving time and money … and making money when you transact. All revealed now in this FREE report, Knowing How Much You Can Afford for a House and Other Tips for Profitable Real Estate Investing.

Comments
  • Mike W.

    I would have liked some specific stocks that are recommendations instead of just fluff.

    Reply

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