Best types of real estate for long-term rental income

I am looking to invest in my first rental property and I'm debating between a small studio in the city center or a two-bedroom apartment in the suburbs. My main goal is to ensure a stable monthly cash flow while minimizing vacancy periods and maintenance headaches. Does anyone have experience with which property type offers a better return on investment in the current market? I would appreciate any advice on what factors I should prioritize before making a decision.

For a first-time investor, I'd lean toward the two-bedroom in the suburbs. Families or long-term couples tend to stay longer, which helps with your goal of minimizing vacancy periods compared to the high turnover in city studios.

City studios are great for short-term rentals, but they can be a headache for maintenance if you aren't nearby. If you are just getting started, check out this guide on how to purchase real estate to understand the basics of property acquisition before you commit real capital.

I own both types. The studio has better cash flow per square foot, but the suburban apartment has much better capital appreciation over time. It really depends on your long-term strategy.

Suburbs are definitely the way to go if you want stability. The tenant pool is usually more stable, though you have to be careful about the local school district ratings as that affects property value significantly.

Don't overlook the maintenance aspect. Studios often have shared amenities that can lead to high HOA fees, which will eat into your monthly cash flow. Always run the numbers on the net income, not just the gross rent.

It is tough to find a good deal in this market. If you are looking globally, you might want to research which countries are currently best for Russians looking to purchase real estate if you are considering diversifying your portfolio outside your home country.

If you want to minimize headaches, avoid the city center. The parking situation and noise complaints in downtown studios can become a full-time job for a landlord.

I've found that two-bedroom units in the suburbs are much easier to manage. You get fewer 'party' calls, and tenants who move in with furniture usually stay for at least two to three years.

Before buying, make sure you look at the tax implications. Sometimes city properties have higher property taxes that can negate any extra rent you might be able to charge.

Many people wonder if they can even get started with a small budget. You might find it interesting to see if it is realistic to find property for 2 million rubles in 2024 to get a sense of entry-level pricing in different markets.

Consider the commute. If the suburb is well-connected to public transit, it will always be in high demand, giving you the best of both worlds: suburban stability and city-level demand.

My advice: prioritize location over everything else. A slightly smaller or older apartment in a high-demand area will always outperform a fancy studio in a neighborhood with no amenities.