If you guys get into privately held rental property......take a look at a good small industrial or commercial building in a GOOD GROWING AND active community. (if you can find one) IF you can get it leased, they are usually a long term lease......and will want to buy it when they can afford it. Do a triple-net lease......to a good tennant......and life is easier than home or apartment buildings. Better rates too. Most corporate accounts are good lessors. You can always go to a REIT and do the same thing.....but the general partner generally makes all the money and the investors are left with the threads.
The key is finding a good community......where there is not much land to develop. New commercial / industrial property costs ALLOT to get the Utilities in and the city fathers want all kinds of green space and expensive stuff these days. Steer clear of that stuff and find a choice building in the right town. IMHO
I think it could be as easy as renting farmland......but with a far greater return. But.....you gotta do your homework!
In my experience -
Commercial buildings are more of an appreciation play, less of a revenue generator. I know there is money to be made in this space, I just haven't been successful buying small to mid sized buildings, renovating & holding.
Triple-net leases, are a very safe way to participate in Real Estate. That safety creates very humble ROI.
Bricks and Mortar retail is in the midst of a huge correction. There will be more blood in the streets before the correction is complete. Like all corrections it will create some great opportunities.
Industrial Real Estate - I don't know diddly.
Multi-family is a grind. Its a great way to create wealth over a very long period of time. Apartments have been on a bull run that started in 2011. People are currently paying insane prices. There's gonna be a lot of owners struggling when interest rates go up. The Twin Cities area has been building an ever increasing number of units every year. There are 24,000 units in the Twin Cities new construction pipe-line.... The bubble's gonna burst sooner or later. I predict the run will last for another year.
Single-family - Not many bargains left in 2017. If you're willing to do all the leasing, maintenance, etc. yourself its a decent wealth creator. Unfortunately, you lose the economy of scale from multi-family. i.e. - A house has 1 roof, 1 furnace, 1 parking area per 1 rental unit. If any of those critical items fail it'll set your cash flow back months if not years. In addition, finance options for "investment homes" kinda sucks. If you go this route, move-in, claim it as your primary residency, and put "homestead" financing in place. Live in it for two years, rinse-repeat.
Farm land - Hard to make SE MN tillable acreage pencil out from a investment only perspective. I don't know enough about pricing vs. production in other areas of the country. Seems like break even corn should drag land values down more than it has... If row crops were my bread and butter, I'd be socking away cash preparing to buy at the bottom of this correction. Though I like a lot of the things the Trump administration stands for, they would scare me if my primary income was farming. Mexico purchases an enormous amount of U.S. corn.
There are Real Estate investment opportunities other than REIT's and going it solo... For example, I have a team of investors who participate in most of my projects. There are others like me. Find an honest partner, with a proven track record. It doesn't require astronomical amounts of money.
^^ Very good summary. And.....I think....spot on. I have found that the small industrial / commercial sites can be great.....but you better do your homework and find the right city / apace. Still.....you are on the money with your line of reason. Go....find your brass ring.