Which Type of Real Estate Makes the Most Money?

There are four types of real estate: Commercial, Office space, retail, and fixer-uppers. Learn about the benefits and downsides of each. Then, make the right decision based on your goals. Which type of real estate will make you the most money? Read on to find out which type is best for you! There are many ways to earn profits with real estate. Consider these options:

Commercial real estate

Despite the fact that commercial real estate makes the most money, there are a few ways to get started in this market. The most common is to invest in mobile home parks, RV parks, billboards, or self-storage facilities. Such properties can bring in a high rate of return. You can also try to invest in a hotel or movie theater. In general, you can expect to make a cap rate of 10% or even lower if you choose to finance the purchase.

Office space

What is the best type of office space? A good example would be flex space, which includes warehouse, distribution, and sales space under one roof. Many businesses require both front and back office space, and flex space provides both. Other types of office space include industrial space that includes warehouse and distribution, sales, and accounting and management. In addition, industrial properties often have office space built out on the side. This type of office is growing in popularity, and a new trend in Los Angeles is building out space specifically for this type of office.


When analyzing which retail real estate properties make the most profit, sales per square foot are the most popular metric to use. However, the retail industry has been struggling to lure shoppers. Today, CoStar reports sales of retail properties at $325 a square foot, down from nearly $400 in the early 2000s. But despite these low sales numbers, many top retailers continue to grow their brick-and-mortar sales.


There are a few different ways to make money in real estate with fixer-uppers. Some people make their money by buying properties that are not yet on the market, while others make their money by driving for dollars. Both methods involve figuring out the real estate market in the area you’re interested in and spotting properties that are ripe for repair. Another way to find a fixer-upper is to search a database, such as the Multiple Listing Service (MLS). MLS is the official housing market database for the United States.

Residential rentals

If you’re looking for the fastest way to profit from real estate, a vacation rental may be the right choice for you. Vacation rentals are a great way to earn side income or passive income without the stress of a full-time job. Moreover, they are especially popular in tourist areas, which means that you can make huge profits by renting out your property during vacation. But you need to be careful in choosing the right property.


While the traditional real estate investment strategy focuses on buying single properties and flipping them, REITs offer investors a variety of real estate investment options. These companies buy into a portfolio of income-producing properties. Although investors do not own equity in the properties, they invest in the companies and use their funds to make investments. Since these companies are typically pass-through entities, they do not pay corporate taxes if they meet certain requirements.

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