When you get into the world of real estate investing, you learn a lot in the process about the different types of properties available for sale. As a wise investor, you will take the time to get to know the different descriptors and tags used when properties are listed and what they can mean to you as a prospective investor. Here are a few questions and answers about certain labels used on different types of properties.
What is a special-purpose property for sale?
Special-purpose properties are not quite as common as other types of real estate property for sale. Most often, these properties are specifically designed for a certain type of operation, such as a school, a library, or even a city park. These properties are far less likely to be transformed into something else because they have a specific layout that is catered to one type of operation. While the occasional special-purpose property will come up, these properties tend to have a particular market, which makes investing in them a relatively fickle matter if you are looking to buy and resell.
What does it mean if a property for sale is a mixed-purpose property?
Mixed-purpose properties are relatively common these days because more people operate a business from their home. In general terms, a mixed-purpose property serves more than one purpose, such as a building that can be used for residential and commercial purposes. A lot of agricultural properties like working farms and ranches are actually mixed-use properties because they are set up for the agricultural business but they also have a home or place to live on the premises. Some commercial properties also have living quarters on-site. An example would be a restaurant with an apartment on the upper floor for the owner. As far as investment goes, these properties are only logical for buying low and selling high; their value tends to stay relatively stable, so buying at fair market value is less likely to yield a return.
What is a converted-use property?
A converted-use property is most often a residential property that was once used for a different purpose. For example, you may see something like an old industrial warehouse that has been transformed into several loft-style apartments or an old church building that has been remodeled into an actual single-family home. Converted-use properties can be a bit unconventional, but they can sometimes be a good investment because they have the wow factor to push interest in the market.
To learn more about different types of properties for sale, contact a real estate agent.
