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Real Estate Investing: What Is the Best Investment Property to Buy?

Stephen Foster - Tuesday, December 28, 2021
Property Management Blog

Investing in real estate is one of the most tried and true methods of building wealth. Not only do you get to enjoy the long-term appreciation of any real estate you own, but you also get to collect monthly rent, which pays your mortgage and puts cash in your pocket.

But there are many different ways you can invest in real estate, each with its pros and cons. Holding real estate as a long-term rental is one of the most effective.

But what type of investment property should you buy? Are single-family homes better than multi-unit homes? What about condos and townhomes? Should you make the jump to apartments right away?

Keep reading below to find out how to buy investment property in San Antonio, and what types of investment property you should focus on as a new investor. 

Single-Family Homes

Single-family homes are a popular type of rental property, especially among first-time investors. Buying a one-unit home is a simple process, and is affordable, often requiring 20% down.

Individual rental homes are always in demand, and many homes in San Antonio are for single families. However, smaller homes are in particular demand, usually two to three bedrooms. This size home also provides more ROI. Houses with more than three bedrooms are going to cost more, but you aren't going to earn enough additional rent to justify the expense.

Small Multi-Unit Properties

Small multi-unit properties are a good bet as well. Duplexes, triplexes, and quadplexes can be purchased the same way as single-unit homes; with a conventional mortgage, paying about 20% down. 

And since homeowners aren't looking to buy multi-unit properties, you'll have less competition and may get a property for a better price. With multiple units under one roof, costs are streamlined and cash flow is usually higher than with individual homes. 

Condos and Townhomes

Many new investors wonder where to buy investment property. Condos and townhomes are good options, as they are usually located near the center of a city. This is the area where people most want to live and are willing to pay a premium for that luxury.

Purchasing a condo or townhome will be much more affordable than a single-family home in the same area, but the ROI will likely be higher. And if you can purchase multiple units in the same building, you can streamline costs and improve management efficiencies. 


In some cities, you can purchase individual apartments inside larger complexes. But more often than not, those investing in apartments are looking to purchase and manage the entire building. Apartment buildings can have as few as five units, while larger complexes can have dozens or hundreds of units.

The more units you have under one roof, the more you can save on expenses and the more profit you can earn. 

Choosing the Best Investment Property

So what is the best investment property to buy? For new investors, a single-family home or small multifamily property will be your best bet.

These units are in-demand in any market and are affordable for first-time investors. If you can save money for a down payment, then you can buy a rental property like this in no time. 

One of the biggest benefits of single-family homes is that they are the easiest type of unit to sell, should you ever need to exit. 

Automate Your Investment Property 

Whether you own a single-family house or an apartment building with 50 units, property management is going to feel like a job. It takes time to sift through applications, screen tenants, handle maintenance, and prevent vacancies.

A property management company that you can trust will handle all of this for you, so you can grow your wealth hands-off. Get a property management quote today for your San Antonio investment property, so you can focus your time on acquiring new properties, not managing your current ones.