Investment properties are a great way to earn passive income. However, it is important to determine which type of investment property can give you good income. There are several styles of houses to choose from, but not all provide the same return on your investment.

Here are a few popular choices for real estate investors that provide the best cash flow and can help them maximize their profits.

1. Side-by-Side Duplexes

Side-by-side duplexes consist of two adjacent houses that are attached through a common wall. They are an attractive option for renters and can offer you substantial income opportunities.

They are designed in a way that gives them the feel of traditional two-story houses. Legal secondary suites can also be built into their basements for extra units to rent out. Therefore, you can get 4 rental units under one roof.

Such duplexes have one of the best cash flow outcomes for investors. Some investors may also purchase just half of the duplex as the entire building might cost you two mortgages. These duplexes are an excellent option for investment in a single-family home.

2. Suited Houses

Suited homes commonly consist of a three-bedroom single-family home with an additional one-bedroom legal suite in the basement. Separate entrances are provided for both units to ensure privacy. These houses are a common choice for families who want to rent out more traditional living space.

Suited houses have two rental units available under one roof, which can maximize your incoming cash flow. It is a great way to get started in real estate investment. Investors purchase a suited property to occupy themselves and then rent out the income suite to help pay out their mortgage faster. Moreover, the equity that they have from this buy can be used to find another home while renting out both the units.

3. Townhouses

Townhouses can be considered a subset of smaller family houses. They are multiple housing units attached through common walls. They are usually located in a row, with each unit connecting with the adjacent unit through a wall.

Tenants prefer to rent these townhouses as they provide them with more room. They also get their own driveway and backyard. This means that investors can charge higher rents than a condo or apartment building. Another benefit of such houses is that they are generally cheaper to purchase than small family homes.

4. Condominiums

Condos consist of multiple buildings, all with separate units owned by a single investor. These units usually share common walls. They are generally located in neighborhoods where there is a higher demand for rental properties. They are specifically built for this purpose and provide tenants with a living space with the feel of a proper home, which apartments fail to provide. Condos are considered one of the best real estate investments because they are more easily rented out and provides a steady stream of income for the investor.

5. Garage Suites

Houses with detached garages can be turned into garage suites. These suites can be added on top of the garage to create an extra rental unit in the property. It can easily incorporate a two-bedroom suite, which is ideal for a small family or single professionals.

This garage suite has the added benefit of natural lighting and has the feel of a loft, which is why tenants are easy to find. It is the perfect option for families who want to increase their incoming cash flows and earn some extra income. The best part is that they seem like two separate houses on one lot as the garage is detached from the primary home.