What type of real estate makes the most money?

The type of real estate that “makes the most money” can vary significantly based on market cycles, location, investor strategy, and risk tolerance. While there’s no single answer, some categories often show high-profit potential:

• Commercial Real Estate (CRE): Often includes multi-family apartments, office buildings, retail centers, and industrial properties. CRE can offer higher returns and longer lease terms than residential, but also requires more capital, specialized knowledge, and can have higher vacancy risks. Multi-family properties, in particular, can be very lucrative for steady income.
• Development and Flipping: Buying undervalued properties (often distressed or in need of significant renovation) and then developing or rehabilitating them for a quick sale (flipping) can yield high profits, but it also carries higher risk, requires significant capital, and demands expertise in construction and market trends.
• Short-Term Rentals (e.g., Airbnb): In popular tourist areas or near attractions (like close to the University of Oregon or scenic areas in Lane County), short-term rentals can generate significantly more income than long-term leases, but they involve more active management and compliance with local regulations.

Specialized Niches: Niche markets like self-storage facilities, medical offices, or data centers can be highly profitable due to consistent demand and specialized needs. Ultimately, the “most money” is made through smart investment, thorough market research, and often with the guidance of experienced professionals who understand the specific opportunities within the Lane County market, like the investment-savvy agents at Better Homes and Gardens Real Estate Equinox.