Building wealth is essential for living and surviving in a society where prices keep rising. And here in the United States, prices across the board have risen considerably since the onset of the COVID-19 pandemic in 2020.

One of the best ways to build wealth today is to invest in real estate. And while there are many other options such as investing in stocks, crypto, and other sources, real estate remains a means for investment that many middle-class Americans can access.

But where should you invest your money? What kind of real estate options are there when it comes to investing and turning a profit?

These are just a couple of the questions many first-time investors ask when they begin a real estate endeavor. And for good reason.

Here, we’ll outline a few of the best ways to invest in real estate today.

Single-Family Homes

As with any investment property, you’ll want to know what you’re really getting yourself into. And as the real estate market is continuously trending up or down, if you’re looking into house flipping, there are a few things that you’ll want to consider.

Currently, as of 2021, the real estate market is in what’s known as a “seller’s market.” And this basically means that the supply of homes is much less than the demand by buyers.

As such, if you own a single-family home today, you might easily be able to sell it for as much as twice the amount you originally purchased it for depending on the area it’s located in.

Home flipping is a great way to invest in real estate. But this approach takes a good bit of strategy, up-front capital, and the knowledge of making a property more valuable through a variety of renovations and other measures.

Vacation Rentals

Vacation rentals are often looked upon as a personal investment. But if you play your cards right, you can make a huge profit from vacation rentals if they’re in the right area.

For example, vacation rentals in a place like Piedmont, North Dakota might not be the most sought-after property on the market today. And this is why location makes all the difference in the world when it comes to investing in a vacation rental.

As such, acquiring vacation rentals in areas where tourism is a major source of revenue is the best strategy. And many of these areas are often located near beaches, theme parks, mountain resorts, or posh urban settings.

It’s also good to note that choosing a vacation rental is only half of the process. You’ll also have to promote it and ensure that your listing is enticing enough to attract a consistent client base in order for you to turn a profit.

Commercial Spaces

If you’re looking to make the big bucks, commercial spaces can offer you a higher rate of monthly income. And this is simply because commercial rental fees are typically much higher than that of single-family homes or vacation rental properties.

For example, commercial properties often include office buildings, strip malls, or entire buildings altogether. And if you have the funding to invest in a large space where you’ll have several businesses occupying your spaces, you could easily turn a six-figure profit each month.

However, just like with vacation rentals, location is everything. So you need to be extremely careful of where you intend to invest your money. As such, vacated strip malls may look promising, but if these locations are in less-traveled areas of a community, you may struggle to find businesses that want to rent out your commercial space.

All in all, investing in real estate is a great way to build a sound financial future. But you really need to familiarize yourself with the business aspects of buying and selling, along with the finer points of researching and investing. But once you have all of your bases covered, you’ll be well on your way to investing and turning a profit.