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Types of Real Estate Investments

Investors can choose from several types of real estate investments, each with its own benefits and considerations:

• Residential Properties: These include single-family homes, condos, and townhouses. They are often the starting point for new investors due to their relative affordability and familiarity.
• Commercial Properties: This category encompasses office buildings, retail spaces, and industrial properties. Commercial real estate can offer higher income potential but typically requires more capital and management expertise.
• Real Estate Investment Trusts (REITs): REITs allow investors to buy shares in a portfolio of real estate assets, providing exposure to the real estate market without the need to directly own or manage properties.
• Vacation Rentals: Platforms like Airbnb have popularized short-term rental investments, which can yield significant returns in high-demand tourist areas.