Yes, these are tough times, but households still have to function, and opens in a new window consumers are turning to businesses for help. Home delivery services, video conferencing platforms, online shopping portals, as well as manufacturers of niche products like headscarves, hand sanitizers and bidets are among the companies that are helping consumers to navigate the new norms brought on by the Covid-19 pandemic. Added to the list of the small businesses that are filling a specific need in these tough times are house flippers, who bring like-new housing options to the market for eager home buyers—many of whom are finding extremely limited inventory in their local real estate markets.

Has brought loss and hardship to millions of Americans, and millions more are fearful and uncertain about what the future holds. House flippers may find it difficult to focus on the silver linings in these dark clouds, but while the coronavirus has been wreaking havoc on the U.S. economy in recent weeks, fix and flip investors stand among the small businesses around the country that can profit due to abrupt changes in market conditions.

Prior to the emergence of Covid-19, 2020 was set to bring an incredibly competitive and lucrative housing market nationwide—with low inventory, low interest rates and high demand. Today, with U.S. mortgage interest rates at the lowest they have been in recorded history, new construction is at a standstill and many cautious property owners are refinancing or postponing listing their homes for sale and are staying put for the time being to wait and see how the economy rebounds. Home buyers who are able and eager to purchase a new home *right now* are finding extremely tight housing inventory in their local markets, and house flippers are poised to fill that need.

Due to possible delays related to construction material supply chain issues, fix and flip investors should be prepared for possible delays in their project turnaround times —and there may be other Covid-19 related delays as well. For example, home buyers will most likely be finding and touring your house flip via an online portal. Waiting for buyers to navigate these new online house hunting norms may add a few weeks of holding costs to your projects.

Having a plan B in place in case there are construction delays, or home sales are a bit slower than normal, is essential, but in many markets around the country, fix and flip investors who are able to wait a little longer for buyers to find their flipped houses are poised to provide much needed relief to eager home buyers while earning a good return on their fix and flip investments.

Involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.

Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent.

If these factors are not well understood and Here is a licensed mortgage company; That May Be able to assist in your future plans to perches property. **https://www.bankrate.com/mortgages/coronavirus-is-changing-home-appraisals/**

Managed by the investor, real estate becomes a risky investment. The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency. A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short-term profit with less effort.

- 1Sources and acquisition of investment property
- 2Sources and management of cash flows
- 3Risk management
- 4Foreclosure investment
- 5See also
- 6References

This section
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Real estate markets in most countries are not as organized or efficient as markets for other, more liquid investment instruments. Individual properties are unique to themselves and not directly interchangeable, which presents a major challenge to an investor seeking to evaluate prices and investment opportunities. For this reason, locating properties in which to invest can involve substantial work and competition among investors to purchase individual properties may be highly variable depending on knowledge of availability. Information asymmetries are commonplace in real estate markets. This increases transactional risk, but also provides many opportunities for investors to obtain properties at bargain prices. Real estate entrepreneurs typically use a variety of appraisal techniques to determine the value of properties prior to purchase.

Typical sources of investment properties include: http://www.brookestarr.com/property-listings/

- Market listings (through a Multiple Listing Service or Commercial Information Exchange)
- Real estate agents and Real estate brokers
- Banks (such as bank real estate owned departments for REO’s and short sales)
- Government entities (such as Fannie Mae, Freddie Mac, and other government agencies)
- Public auction (foreclosure sales, estate sales, etc.)
- Private sales (transactions for sale by owner For sale by owner)
- Real estate wholesalers and investors (flipping)

Once an investment property has been located, and preliminary due diligence (investigation and verification of the condition and status of the property) completed, the investor will have to negotiate a sale price and sale terms with the seller, then execute a contract for sale. Most investors employ real estate agents and real estate attorneys to assist with the acquisition process, as it can be quite complex and improperly executed transactions can be very costly. During the acquisition of a property, an investor will typically make a formal offer to buy including payment of “earnest money” to the seller at the start of negotiation to reserve the investor’s rights to complete the transaction if price and terms can be satisfactorily negotiated. This earnest money may or may not be refundable, and is considered to be a signal of the seriousness of the investor’s intent to purchase. The terms of the offer will also usually include a number of contingencies which allow the investor time to complete due diligence, inspect the property and obtain financing among other requirements prior to final purchase. Within the contingency period, the investor usually has the right to rescind the offer with no penalty and obtain a refund of earnest money deposits. Once contingencies have expired, rescinding the offer will usually require forfeiture of the earnest money deposits and may involve other penalties as well.

Real estate assets are typically very expensive in comparison to other widely available investment instruments (such as stocks or bonds). Only rarely will real estate investors pay the entire amount of the purchase price of a property in cash. Usually, a large portion of the purchase price will be financed using some sort of financial instrument or debt, such as a mortgage loan collateralized by the property itself. The amount of the purchase price financed by debt is referred to as leverage. The amount financed by the investor’s own capital, through cash or other asset transfers, is referred to as equity. The ratio of leverage to total appraised value (often referred to as “LTV”, or loan to value for a conventional mortgage) is one mathematical measure of the risk an investor is taking by using leverage to finance the purchase of a property. Investors usually seek to decrease their equity requirements and increase their leverage, so that their return on investment (ROI) is maximized. Lenders and other financial institutions usually have minimum equity requirements for real estate investments they are being asked to finance, typically on the order of 20% of the appraised value. Investors seeking low equity requirements may explore alternate financing arrangements as part of the purchase of a property (for instance, seller financing, seller subordination, private equity sources, etc.)

If the property requires substantial repair, traditional lenders like banks will often not lend on a property and the investor may be required to borrow from a private lender utilizing a short-term bridge loan like a Hard money loan from a Hard money lender. Hard money loans are usually short-term loans where the lender charges a much higher interest rate because of the higher risk nature of the loan. Hard money loans are typically at a much lower Loan-to-value ratio than conventional mortgages.

Some real estate investment organizations, such as real estate investment trusts (REITs) and some pension funds and Hedge funds, have large enough capital reserves and investment strategies to allow 100% equity in the properties that they purchase. This minimizes the risk which comes from leverage but also limits potential ROI.

By leveraging the purchase of an investment property, the required periodic payments to service the debt create an ongoing (and sometimes large) negative cash flow beginning from the time of purchase. This is sometimes referred to as the carrying cost or “carry” of the investment. To be successful, real estate investors must manage their cash flows to create enough positive income from the property to at least offset the carry costs.

With the signing of the JOBS Act in April 2012 by President Obama, there has been an easing on investment solicitations. A newer method of raising equity in smaller amounts is through real estate crowdfunding which can pool accredited and/or non-accredited investors together in a special purpose vehicle for all or part of the equity capital needed for the acquisition. The fundraiser was the first company to crowdfund a real estate investment in the United States.

- net operating income (NOI)
- tax shelter offsets
- equity build-up
- capital appreciation

**Net operating income**, or NOI, is the sum of all positive cash flows from rents and other sources of ordinary income generated by a property, minus the sum of ongoing expenses, such as maintenance, utilities, fees, taxes, and other items of that nature (debt service is not factored into the NOI). The ratio of NOI to the asset purchase price, expressed as a percentage, is called the capitalization rate, or CAP rate, and is a common measure of the performance of an investment property.

** **

**Tax shelter offsets** occur in one of three ways: depreciation (which may sometimes be accelerated), tax credits, and carryover losses which reduce tax liability charged against income from other sources for a period of 27.5 years. Some tax shelter benefits can be transferable, depending on the laws governing tax liability in the jurisdiction where the property is located. These can be sold to others for a cash return or other benefit.

**Equity build-up** is the increase in the investor’s equity ratio as the portion of debt service payments devoted to principal accrue over time. Equity build-up counts as a positive cash flow from the asset where the debt service payment is made out of income from the property, rather than from independent income sources.

**Capital appreciation** is the increase in market value of the asset over time, realized as a cash flow when the property is sold. Capital appreciation can be very unpredictable unless it is part of a development and improvement strategy. Purchase of a property for which the majority of the projected cash flows are expected from capital appreciation (prices going up) rather than other sources is considered speculationrather than investment.

Management and evaluation of risk is a major part of any successful real estate investment strategy. Risks occur in many different ways at every stage of the investment process. Below is a tabulation of some common risks and typical risk mitigation strategies used by real estate investors.

Risk | Mitigation Strategy |
---|---|

Fraudulent sale | Verify ownership, purchase title insurance |

Adverse possession | Obtain a boundary survey from a licensed surveyor |

Environmental contamination | Obtain environmental survey, test for contaminants (lead paint, asbestos, soil contaminants, etc.) |

Building component or system failure | Complete full inspection prior to purchase, perform regular maintenance |

Overpayment at purchase | Obtain third-party appraisals and perform discounted cash flow analysis as part of the investment pro forma, do not rely on capital appreciation as the primary source of gain for the investment |

Cash shortfall | Maintain sufficient liquid or cash reserves to cover costs and debt service for a period of time, |

Economic downturn | Purchase properties with distinctive features in desirable locations to stand out from competition, control cost structure, have tenants sign long-term leases |

Tenant destruction of property | Screen potential tenants carefully, hire experienced property managers |

Underestimation of risk | Carefully analyze financial performance using conservative assumptions, ensure that the property can generate enough cash flow to support itself |

Market Decline | Purchase properties based on a conservative approach that the market might decline and rental income may also decrease |

General wear and tear | undertake DIY or professional technicians such as plumbers, electricians, builders, carpenters (Input from JC) |

Fire, flood, personal injury | Insurance policy on the property |

Tax Planning | Plan purchases and sales around an exit strategy to save taxes. |

Some individuals and companies are engaged in the business of purchasing properties that are in Foreclosure. A property is considered in foreclosure when the homeowner has not made a mortgage payment for at least 90 days. These properties can be purchased before the foreclosure auction (pre-foreclosure) or at the foreclosure auction which is a public sale. If no one purchases the property at the foreclosure auction then the property will be returned to the lender that owns the mortgage on the property.^{[3]}

Once a property is sold at the foreclosure auction and the foreclosure process is completed, the lender may keep the proceeds to satisfy their mortgage and any legal costs that they incurred. The foreclosing bank has the right to continue to honor the tenant’s lease (if there is a tenant in the property), but usually as a rule the bank wants the property vacant, in order to sell it more easily.^{} Thus distressed assets (such as foreclosed property or equipment) are considered by some to be worthwhile investments because the bank or mortgage company is not motivated to sell the property for more than is pledged against it.

U.S. foreclosure activity dropped to a 74-month low in April 2013, with 144,790 properties with foreclosure filings. Although still about twice as high as the average 75,000 per month in 2005, it was 60 percent below the monthly peak of more than 367,000 in March 2010.,^{[5]} with about one of every 100 U.S. households at some stage of the foreclosure process, according to the latest numbers from data aggregator RealtyTrac.^{[6]}

- Cash on cash return
- Creative Real Estate Investing
- An internal rate of return
- Investment Rating for Real Estate
- Real estate appraisal
- Real-estate developer
- Real estate investor
- Off plan property
- Wholesaling
- Depreciation Recapture

**Jump up^**https://www.crowdfundinsider.com/2014/09/50892-fundrise-adds-big-name-investors-including-ratner-elghanayan-guggenheim-funding-now-38-million/**Jump up^**https://blogs.wsj.com/venturecapital/2014/09/26/renren-backed-fundrise-bulks-up-in-real-estate-crowdfunding-sector/**Jump up^**Levinrad, Lex (2010-12-17). “Investing in Foreclosures For Beginners”. Distressed Real Estate Institute. Archived from the original on 2013-01-02. Retrieved 2012-12-31.**Jump up^**Portman, Janet (2008-02-07). “Foreclosure causes heartache for renters”. Inman News. Retrieved 2008-02-24.**Jump up^**http://www.inman.com/2013/07/09/the-foreclosure-crisis-is-over/#sthash.eNrqJEjm.dpuf**Jump up^**“The foreclosure crisis is over”. Inman News. 2013-07-13. Retrieved 2008-07-22.- https://www.bankrate.com/mortgages/coronavirus-is-changing-home-appraisals/

In finance, the **rule of 72**, the **rule of 70**^{[1]} and the **rule of 69.3** are methods for estimating an investment‘s doubling time. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling. Although scientific calculators and spreadsheet programs have functions to find the accurate doubling time, the rules are useful for mental calculations and when only a basic calculator is available.^{[2]}

These rules apply to exponential growth and are therefore used for compound interest as opposed to simple interest calculations. They can also be used for decay to obtain a halving time. The choice of number is mostly a matter of preference: 69 is more accurate for continuous compounding, while 72 works well in common interest situations and is more easily divisible. There are a number of variations to the rules that improve accuracy. For periodic compounding, the *exact* doubling time for an interest rate of *r* percent per period is

- {\displaystyle t={\frac {\ln(2)}{\ln(1+r/100)}}\approx {\frac {72}{r}}},

where *t* is the number of periods required. The formula above can be used for more than calculating the doubling time. If one wants to know the tripling time, for example, simply replace the constant 2 in the numerator with 3. As another example, if one wants to know the number of periods it takes for the initial value to rise by 50%, replace the constant 2 with 1.5.

To estimate the number of periods required to double an original investment, divide the most convenient “rule-quantity” by the expected growth rate, expressed as a percentage.

- For instance, if you were to invest $100 with compounding interest at a rate of 9% per annum, the rule of 72 gives 72/9 = 8 years required for the investment to be worth $200; an exact calculation gives ln(2)/ln(1+0.09) = 8.0432 years.

Similarly, to determine the time it takes for the value of money to halve at a given rate, divide the rule quantity by that rate.

- To determine the time for money‘s buying power to halve, financiers simply divide the rule-quantity by the inflation rate. Thus at 3.5% inflation using the
**rule of 70**, it should take approximately 70/3.5 = 20 years for the value of a unit of currency to halve^{[1]}. - To estimate the impact of additional fees on financial policies (e.g., mutual fund fees and expenses, loading and expense charges on variable universal life insurance investment portfolios), divide 72 by the fee. For example, if the Universal Life policy charges an annual 3% fee over and above the cost of the underlying investment fund, then the total account value will be cut to 1/2 in 72 / 3 = 24 years, and then to just 1/4 the value in 48 years, compared to holding exactly the same investment outside the policy.

The value 72 is a convenient choice of the numerator, since it has many small divisors: 1, 2, 3, 4, 6, 8, 9, and 12. It provides a good approximation for annual compounding, and for compounding at typical rates (from 6% to 10%). The approximations are less accurate at higher interest rates.

For continuous compounding, 69 gives accurate results for any rate. This is because ln(2) is about 69.3%; see derivation below. Since daily compounding is close enough to continuous compounding, for most purposes 69, 69.3 or 70 are better than 72 for daily compounding. For lower annual rates than those above, 69.3 would also be more accurate than 72.

Rate | Actual Years | Rate * Actual Years | Rule of 72 | Rule of 70 | Rule of 69.3 | 72 adjusted | E-M rule |
---|---|---|---|---|---|---|---|

0.25% | 277.605 | 69.401 | 288.000 | 280.000 | 277.200 | 277.667 | 277.547 |

0.5% | 138.976 | 69.488 | 144.000 | 140.000 | 138.600 | 139.000 | 138.947 |

1% | 69.661 | 69.661 | 72.000 | 70.000 | 69.300 | 69.667 | 69.648 |

2% | 35.003 | 70.006 | 36.000 | 35.000 | 34.650 | 35.000 | 35.000 |

3% | 23.450 | 70.349 | 24.000 | 23.333 | 23.100 | 23.444 | 23.452 |

4% | 17.673 | 70.692 | 18.000 | 17.500 | 17.325 | 17.667 | 17.679 |

5% | 14.207 | 71.033 | 14.400 | 14.000 | 13.860 | 14.200 | 14.215 |

6% | 11.896 | 71.374 | 12.000 | 11.667 | 11.550 | 11.889 | 11.907 |

7% | 10.245 | 71.713 | 10.286 | 10.000 | 9.900 | 10.238 | 10.259 |

8% | 9.006 | 72.052 | 9.000 | 8.750 | 8.663 | 9.000 | 9.023 |

9% | 8.043 | 72.389 | 8.000 | 7.778 | 7.700 | 8.037 | 8.062 |

10% | 7.273 | 72.725 | 7.200 | 7.000 | 6.930 | 7.267 | 7.295 |

11% | 6.642 | 73.061 | 6.545 | 6.364 | 6.300 | 6.636 | 6.667 |

12% | 6.116 | 73.395 | 6.000 | 5.833 | 5.775 | 6.111 | 6.144 |

15% | 4.959 | 74.392 | 4.800 | 4.667 | 4.620 | 4.956 | 4.995 |

18% | 4.188 | 75.381 | 4.000 | 3.889 | 3.850 | 4.185 | 4.231 |

20% | 3.802 | 76.036 | 3.600 | 3.500 | 3.465 | 3.800 | 3.850 |

25% | 3.106 | 77.657 | 2.880 | 2.800 | 2.772 | 3.107 | 3.168 |

30% | 2.642 | 79.258 | 2.400 | 2.333 | 2.310 | 2.644 | 2.718 |

40% | 2.060 | 82.402 | 1.800 | 1.750 | 1.733 | 2.067 | 2.166 |

50% | 1.710 | 85.476 | 1.440 | 1.400 | 1.386 | 1.720 | 1.848 |

60% | 1.475 | 88.486 | 1.200 | 1.167 | 1.155 | 1.489 | 1.650 |

70% | 1.306 | 91.439 | 1.029 | 1.000 | 0.990 | 1.324 | 1.523 |

An early reference to the rule is in the *Summa de arithmetic* (Venice, 1494. Fol. 181, n. 44) of Luca Pacioli (1445–1514). He presents the rule in a discussion regarding the estimation of the doubling time of an investment but does not derive or explain the rule, and it is thus assumed that the rule predates Pacioli by some time.

“ | A voler sapere ogni quantità a tanto per 100 l’anno, in quanti anni sarà tornata doppia tra utile e capitale, (emphasis added).tieni per regola 72, a mente, il quale sempre partirai per l’interesse, e quello che ne viene, in tanti anni sarà raddoppiato. Esempio: Quando l’interesse è a 6 per 100 l’anno, dico che si parta 72 per 6; ne vien 12, e in 12 anni sarà raddoppiato il capitale. |
” |

Roughly translated:

“ | In wanting to know of any capital, at a given yearly percentage, in how many years it will double adding the interest to the capital, keep as a rule [the number] 72 in mind, which you will always divide by the interest, and what results, in that many years it will be doubled. Example: When the interest is 6 percent per year, I say that one divides 72 by 6; 12 results, and in 12 years the capital will be doubled. |

For higher rates, a bigger numerator would be better (e.g., for 20%, using 76 to get 3.8 years would be only about 0.002 off, where using 72 to get 3.6 would be about 0.2 off). This is because, as above, the rule of 72 is only an approximation that is accurate for interest rates from 6% to 10%. For every three percentage points away from 8% the value 72 could be adjusted by 1.

- {\displaystyle t\approx {\frac {72+(r-8)/3}{r}}}

or for the same result, but simpler:

- {\displaystyle t\approx {\frac {70+(r-2)/3}{r}}}
- {\displaystyle t\approx {\frac {69.3}{r}}+0.33}

The Eckart–McHale second-order rule (the E-M rule) provides a multiplicative correction for the rule of 69.3 that is very accurate for rates from 0% to 20%. The rule of 69.3 is normally only accurate at the lowest end of interest rates, from 0% to about 5%. To compute the E-M approximation, simply multiply the rule of 69.3 results by 200/(200−*r*) as follows:

- {\displaystyle t\approx {\frac {69.3}{r}}\times {\frac {200}{200-r}}}.

For example, if the interest rate is 18%, the rule of 69.3 says *t* = 3.85 years. The E-M rule multiplies this by 200/(200−18), giving a doubling time of 4.23 years, where the actual doubling time at this rate is 4.19 years. (The E-M rule thus gives a closer approximation than the rule of 72.)

Note that the numerator here is simply 69.3 times 200. As long as the product stays constant, the factors can be modified arbitrarily. The E-M rule could thus be written also as

- {\displaystyle t\approx {\frac {70}{r}}\times {\frac {198}{200-r}}} or {\displaystyle t\approx {\frac {72}{r}}\times {\frac {192}{200-r}}}

in order to keep the product mostly unchanged. In these variants, the multiplicative correction becomes 1 respectively for r=2 and r=8, the values for which the rule of 70 (respectively 72) is most precise.

Similarly, the third-order Padé approximant gives a more accurate answer over an even larger range of *r*, but it has a slightly more complicated formula:

- {\displaystyle t\approx {\frac {69.3}{r}}\times {\frac {600+4r}{600+r}}}.

For periodic compounding, future value is given by:

- {\displaystyle FV=PV\cdot (1+r)^{t}}

where {\displaystyle PV} is the present value, {\displaystyle t} is the number of time periods, and {\displaystyle r} stands for the interest rate per time period.

The future value is double the present value when the following condition is met:

- {\displaystyle (1+r)^{t}=2\,}

This equation is easily solved for {\displaystyle t}:

- {\displaystyle {\begin{array}{ccc}\ln((1+r)^{t})&=&\ln 2\\t\ln(1+r)&=&\ln 2\\t&=&{\frac {\ln 2}{\ln(1+r)}}\end{array}}}

A simple rearrangement shows:

- {\displaystyle {\frac {\ln {2}}{\ln {(1+r)}}}={\bigg (}{\frac {\ln 2}{r}}{\bigg )}{\bigg (}{\frac {r}{ln(1+r)}}{\bigg )}}

If *r* is small, then ln(1 + *r*) approximately equals *r* (this is the first term in the Taylor series). That is, the latter term grows slowly when {\displaystyle r} is close to zero.

Calling this latter term {\displaystyle f(r)}, the function {\displaystyle f(r)} is shown to be accurate in the approximation of {\displaystyle t} for a small, positive interest rate when {\displaystyle r=.08} (see derivation below). {\displaystyle f(.08)\approx 1.03949}, and we therefore approximate time {\displaystyle t} as:

- {\displaystyle t={\bigg (}{\frac {\ln 2}{r}}{\bigg )}f(.08)\approx {\frac {.72}{r}}}

Written as a percentage:

- {\displaystyle {\frac {.72}{r}}={\frac {72}{100r}}}

This approximation increases in accuracy as the compounding of interest becomes continuous (see derivation below). {\displaystyle 100r} is {\displaystyle r} written as a percentage.

In order to derive the more precise adjustments presented above, it is noted that {\displaystyle \ln(1+r)\,} is more closely approximated by {\displaystyle r-{\frac {r^{2}}{2}}} (using the second term in the Taylor series). {\displaystyle {\frac {0.693}{r-r^{2}/2}}} can then be further simplified by Taylor approximations:

- {\displaystyle {\begin{array}{ccc}{\frac {0.693}{r-r^{2}/2}}&=&{\frac {69.3}{R-R^{2}/200}}\\&&\\&=&{\frac {69.3}{R}}{\frac {1}{1-R/200}}\\&&\\&\approx &{\frac {69.3(1+R/200)}{R}}\\&&\\&=&{\frac {69.3}{R}}+{\frac {69.3}{200}}\\&&\\&=&{\frac {69.3}{R}}+0.34\end{array}}}

Replacing the “R” in *R/200* on the third line with 7.79 gives 72 on the numerator. This shows that the rule of 72 is most precise for periodically composed interests around 8%.

Alternatively, the E-M rule is obtained if the second-order Taylor approximation is used directly.

For continuous compounding, the derivation is simpler and yields a more accurate rule:

- {\displaystyle {\begin{array}{ccc}(e^{r})^{p}&=&2\\e^{rp}&=&2\\\ln e^{rp}&=&\ln 2\\rp&=&\ln 2\\p&=&{\frac {\ln 2}{r}}\\&&\\p&\approx &{\frac {0.693147}{r}}\end{array}}}

Residential real estate may contain either a single family or multifamily structure that is available for occupation or for non-business purposes.^{[2]}

Residences can be classified by if and how they are connected to neighboring residences and land. Different types of housing tenure can be used for the same physical type. For example, connected residences might be owned by a single entity and leased out, or owned separately with an agreement covering the relationship between units and common areas and concerns.

- Major categories

- Attached / multi-unit dwellings
- Apartment (American English) or Flat (British English) – An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.
- Multi-family house – Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.
- Terraced house (a. k. a.
*townhouse*or*rowhouse*) – A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space. - Condominium (American English) – A building or complex, similar to apartments, owned by individuals. Common grounds and common areas within the complex are owned and shared jointly. In North America, there are
*townhouse*or*rowhouse*style condominiums as well. The British equivalent is a block of flats. - Cooperative (a. k. a. co-op) – A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

- Semi-detached dwellings
- Duplex – Two units with one shared wall.

- Detached dwellings
- Portable dwellings
- Mobile homes or residential caravans – A full-time residence that can be (although might not in practice be) movable on wheels.
- Houseboats – A floating home
- Tents – Usually temporary, with roof and walls consisting only of fabric-like material.

The size of an apartment or house can be described in square feet or meters. In the United States, this includes the area of “living space”, excluding the garage and other non-living spaces. The “square meters” figure of a house in Europe may report the total area of the walls enclosing the home, thus including any attached garage and non-living spaces, which makes it important to inquire what kind of surface area definition has been used. It can be described more roughly by the number of rooms. A studio apartment has a single bedroom with no living room (possibly a separate kitchen). A one-bedroom apartment has a living or dining room separate from the bedroom. Two bedrooms, three bedrooms, and larger units are common. (A bedroom is a separate room intended for sleeping. It commonly contains a bed and, in newer dwelling units, a built-in closet for clothes storage.)

- Other categories

The size of these is measured in Gaz (square yards), Quila, Marla, Beegha, and acre.

See List of house types for a complete listing of housing types and layouts, real estate trends for shifts in the market, and house or home for more general information.

Rental Real Estate

As Our Investment Vehicle?

Principle Pay-down Equity & Appreciation

Cherry on Top – but its a big potential cherry! Tax Benefits Depreciation

Deduct Interest Payments, Improvements & Expenses

High Yield, All Cash Purchase 6-10%

Conventional Loan 8-15%*

Bad Property Management (Biggest Killer)

Problem Residents.

2. Outside in Approach to Evaluating Rentals

3. 6 Factors of a Great Rental Market