What Real Estate Should I Invest In? Expert Tips from Kitsap Peninsula Realtor Bre Enbom

If you’ve been asking yourself “What kind of real estate should I invest in?”, you’re not alone. With property values fluctuating and rental demand rising across Washington State, finding the right investment strategy is key. As a Kitsap Peninsula real estate expert, I’m here to help you understand which types of real estate investments best fit your goals, lifestyle, and risk tolerance.

Passive Real Estate Investments

For those who want to grow their wealth without day-to-day management, passive real estate investments are a smart starting point.

Real Estate Investment Trusts (REITs):
These operate like mutual funds for real estate. Investors buy shares in a company that owns income-producing properties. REITs offer strong liquidity and steady dividends, but you won’t control which properties are owned.

Crowdfunding Platforms:
Sites like Fundrise or RealtyMogul let you pool money with other investors to participate in residential or commercial projects. This option provides access to larger deals without needing a huge upfront investment.

Second Homes or Short-Term Rentals:
In a scenic area like the Kitsap Peninsula, buying a second home to rent out on Airbnb can be profitable—especially with proximity to Seattle commuters and local tourism hotspots like Poulsbo, Bainbridge Island, and Gig Harbor.

Active Real Estate Investments

If you prefer more hands-on involvement, active investments may be ideal.

Rental Properties:
Owning rental homes can generate consistent income and long-term equity. Look for properties where annual rent equals at least 7% of the purchase price. Kitsap’s strong rental demand makes this strategy appealing for both new and seasoned investors.

Fix-and-Flips:
Buying undervalued homes, renovating, and reselling can yield quick profits—but it requires experience, time, and a deep understanding of local market trends.

Commercial Real Estate:
Retail, office, or multifamily investments often offer higher returns and longer leases, though they demand more capital and market insight.

Choosing the Right Investment

No matter your approach, always analyze:

• Location: Prioritize areas with growing job markets and infrastructure development.
  
  

• Cash Flow: Ensure income covers expenses like mortgage, taxes, and upkeep.
  
  

• Appreciation Potential: Properties near Kitsap’s waterfronts or expanding communities often see the best long-term growth.
  
  

Ultimately, there’s no one-size-fits-all strategy. For a personalized real estate investment plan tailored to your goals, connect with Bre Enbom, Kitsap Peninsula Realtor with Infinity Real Estate, for local guidance and proven expertise.