There are several different types of residential income properties, but all share the same purpose which is to generate income and are typically considered investment. Below are some of the residential income properties types
Duplex –is defined as any dwelling that provides two separate units with separate entrances. This could include two-story houses having a complete apartment units on each, floor, separate bungalow units, or detached townhouse with two separate apartment units that generate income through the residents paying rent to the landlord.
Triplex – Are similar to that of a duplex, but contain one addition unit and tend to be popular among new investors of residential income properties due to the easier management of the property.
Apartment Building – (5+ Units or More) – The most common, and well known of the residential income properties is the often referred to as Multi-Family buildings or apartment buildings, which pertains to apartment complexes that contain 5 or more individual residential units. Multi-Family buildings/Apartments are considered residential income producing properties based upon income the property generates from the tenants that reside in the apartment units, e.g. rent. Apartments can be as big as a few units on one or two floors to multiple floors with hundreds of apartments units within the building ranging from different sizes and types. Apartment units are diverse in size and design, and include studio/efficiency units, and one, two, three, and more, bedroom floor plans. The modern apartment units can be as large as a single-family home and can include a family room, den, home office, and/or formal dining room, and more.
Mixed Use Building – Which is considered a highbred of both a residential income property and commercial building with space for commercial, business, or office use, and space for residential use. Typically the residential units and tenants reside above that of the commercial units which are commonly found on the first floor. Many new and modern developments of the Mix Use properties have become popular locations for tenants to live and are commonly found in high density locations.
As you can see Residential Income Properties are a diverse niche within commercial real estate and can pertain to buildings as small a Duplex all the way to a 40 story high-rise apartment complex, but in the end they all share the same basic fundamental goal which is to generate income through the renting or leasing of units.
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