Choosing what real estate to invest in can be a difficult but enjoyable decision. Real estate investing choices include commercial properties and residential properties. Also within these categories are retail properties and rehab properties. Retail properties are those properties that have been fixed up or rehabbed so that they are worth close to or equivalent to market value. Rehab properties are those properties that need some sort of work to be done to them. This work can include anything from a gut rehab to a few cosmetic issues. The choice of which one of these the investor wants to invest in is up to them.

Commercial properties are those properties that include malls, industrial, office buildings, and hotels. These properties normally generate income based upon leasing space to other businesses. They can also include apartment buildings that are 5 units or more. These properties can be purchased at retail and as a fixer upper. The fixer upper normally can generate more capital gains in less time then the retail property. The retail property is mostly used to generate a monthly cash flow from rental or leasing income.

Residential properties are properties designed to house 1 to 4 families and can also be purchased retail or as a fixer upper. The same concept of the fixer upper generating more capital gains in less time holds true here as well. A real estate investor would do some market research to determine which type of property to invest in based upon the needs of the city they wish to invest in.