The Best Types of Real Estate – Which Should You Buy?

Total housing units in St. Louis

Read Time: 5 Minutes
1/31/2025

Introduction: Choosing the Right Type of Real Estate

If you’re looking to buy real estate, you probably have an idea of what type of property you want. Maybe you’re drawn to single-family homes because they’re simple and stable. Or maybe you’re excited about multi-family properties because they offer more cash flow.

But here’s the thing—choosing the right real estate type isn’t just about what you want. It’s about what’s actually available in the market you’re searching in.

If you can learn to combine your preferred type of real estate with a market that supports that asset type, you’ll soar with that strategy.

This guide will help you understand:
1️⃣ The pros and cons of different property types
2️⃣ A pro tip for investors on why checking asset type data is crucial
3️⃣ Where to find asset type data to make better buying decisions

Let’s dive in.


1. Pros and Cons of Different Types of Real Estate

Not all real estate is created equal. Each property type comes with its own advantages and challenges. Whether you’re a homebuyer or an investor, it’s important to understand these differences before you make a purchase.Types of homes in St. Louis, displayed with a pie chart

Let’s take a deep-dive into the pros and cons of some of the main types of real estate.

Single-Family Homes (SFH)

A standalone house meant for one family.

Best For: First-time homebuyers, investors looking for long-term stability.

Pros:
✔ Easier to finance than multi-family properties.
✔ Strong resale value due to high buyer demand.
✔ Lower tenant turnover compared to apartments.

Cons:
❌ Typically lower cash flow than multi-family properties.
❌ Harder to scale if you want to own multiple rental units.


Duplexes, Triplexes & Quadplexes (2-4 Unit Homes)

Small multi-family properties with 2-4 rental units.

Best For: Investors looking for more rental income, house hackers (living in one unit and renting out the others).

Pros:
✔ More rental income than a single-family home.
✔ Can qualify for traditional residential loans (unlike larger apartment buildings).
✔ A good balance between homeownership and investing.

Cons:
❌ More maintenance than a single rental unit.
❌ Limited availability in some markets.


Small Multi-Family (5-9 Units)

Apartment buildings with 5-9 units.

Best For: Investors looking for long-term cash flow and scalability.

Pros:
✔ Higher rental income compared to single-family and duplex properties.
✔ Spreads risk across multiple tenants—vacancies hurt less.

Cons:
❌ Requires commercial financing, which has stricter lending requirements.
❌ Harder to find in some markets.


Large Multi-Family (10+ Units)

Apartment complexes with 10 or more units.

Best For: Experienced investors looking for strong cash flow and long-term wealth.

Pros:
✔ Reliable rental income.
✔ Can withstand market downturns better since multiple tenants contribute to revenue.

Cons:
❌ Requires large upfront capital and commercial loans.
❌ Typically needs professional management.
❌ Time to find and close a deal can be significantly longer than other types of real estate.


Mobile Homes

Manufactured homes placed in mobile home parks or on private land.

Best For: Budget-conscious buyers, investors looking for low-cost rentals.

Pros:
✔ Very affordable compared to traditional homes.
✔ High rental demand in some markets.

Cons:
❌ Can be harder to finance.
❌ Mobile home parks often charge lot rent, reducing profits.


Boat, RV, and Van Homes

Alternative living spaces that allow for mobility.

Best For: Digital nomads, retirees, and travelers.

Pros:
✔ Affordable and flexible lifestyle.
✔ Lower overall living costs.

Cons:
❌ Not an appreciating asset like traditional real estate.
❌ Requires special parking or docking arrangements.


2. Pro Tip for Investors: Check Asset Type Data Before You Buy

Now that you understand the types of properties, here’s an important tip: It doesn’t matter what kind of property you want to buy if it’s not in high supply in your target area.Types of real estate by zip code

Imagine you’re searching for 5-9 unit apartment buildings in a specific city. You find a couple of listings but realize there aren’t many available. Why? Because that city mostly has single-family homes and duplexes—5-9 unit buildings are rare.

Granted, single-family and duplexes are usually the dominant kind of real estate in any market, but some markets have significantly fewer 5-9 unit buildings than other markets.

Your chances of finding a good 5-9 unit building will depend on whether you did your market research to determine if this market supports your type of real estate.

This is where asset type data becomes a game-changer. Instead of searching blindly, you can use asset type data to instantly see:

  • How many of each property type exist in a zip code
  • Which types of properties are in high demand
  • Where to focus your search for better investment opportunities

For example, if your strategy depends on buying small multi-family buildings and an area has very few of them, you might be better off looking at a different zip code where they are more common.


3. Where to Find Asset Type Data

If you want to make better investment decisions, you need reliable data. Here are 4 great places to find asset type data:

1. BrightInvestor

Simple table of real estate asset types across St. LouisBrightInvestor provides real estate types by zip code using accurate data from the U.S. Census Bureau.

Crafted with simplicity in mind, this software provides:
✔ A breakdown of property types in any area.
Easy-to-read tables detailing density by zip code
✔ A Simple pie chart to give an broad overview of real estate types in a market.

2. Zillow

Zillow is useful for checking types of homes listed for sale in a specific market. However, it doesn’t provide full market data—just current listings.

3. Local Real Estate Agents

Real estate agents can offer insights into what property types are in demand and which areas are better suited for certain investments.

4. County Tax Records

County tax records can show you what kinds of properties exist in a neighborhood, including multi-family units and commercial properties.


Final Thoughts: Making the Smartest Choice

At the end of the day, the best type of real estate to buy isn’t just about personal preference—it’s about what’s available and in demand in your target market.

By checking asset type data before you buy, you can avoid wasting time and focus your search on the areas that match your investment strategy.

Instead of struggling to find a duplex in a city that mostly has single-family homes, you can quickly identify a better zip code where multi-family properties are common and competition is lower.


Ready to Make Finding Asset Type Data Easy?

If you’re serious about real estate investing, don’t waste time searching in the wrong markets. BrightInvestor gives you instant access to asset type data, so you can make smarter buying decisions in minutes.

👉 Start finding asset type data today by signing up for your BrightInvestor account here!