Why Single Family Homes for Rent Are Good for Investors
Real estate investing is full of different choices for investors who want a diverse portfolio. Here are reasons why single family homes for rent are great.
If you're considering an investment opportunity in the real estate world, you have no shortage of options. From condos to apartments to homes and townhouses, it can be difficult to know which choice is best for you.
Investors looking to maximize their return consider investing in single-family homes. Single-family residences or SFRs tend to be more affordable, easier to sell, and great for diversifying one's portfolio.
Here are a few of the many reasons why you should consider investing in single family homes for rent.
Property Ownership Is Down
As a younger generation of homeowners starts to look into the market, one massive trend becomes clear: home ownership is down. In fact, Bloomberg reports that home ownership is the lowest it's been since 1965!
Millennials aren't looking to buy homes these days thanks to overwhelming debt and low-paying jobs. Instead, they're looking for mobility, flexibility, and a great price.
As a result, these young families are more inclined to rent a home than outright buy one. There's practically never been a better time to invest in rental properties!
Single Family Homes for Rent Are More Affordable
Millennials aren't the only ones who love the low-costs of single family homes for rent. Since these homes tend to be smaller and closer together, they're often more affordable for investors.
A lower price increases your odds of getting approved for a bank loan, too, which doesn't hurt.
A lower price and smaller square footage may also make it easier to renovate the home. Since there's less square footage to cover, you'll spend less but recoup more when it comes time to sell.
They're Easy to Manage
So far we know that millennials aren't interested in owning a house, but love to rent them. We also know that single family homes for rent are often cheaper to invest in.
But what happens after your initial investment? It isn't as if the tenants are left on their own, there are still maintenance costs and repairs to deal with.
This is yet another area where single family homes for rent are a smart option.
Smaller properties are easier to manage than larger ones, so it's less of a hassle for both tenant and landlord. You're sure to save money on basics like maintenance and landscaping.
And since SFRs are easier to handle than their larger counterparts, you'll have more freedom to invest in other properties. Growing your portfolio is far easier when you're managing several small properties as opposed to one massive investment.
Invest in a Property Today
If you're looking for great investment opportunities, you can't go wrong with a single-family home. However, you'll want to make sure you invest with the right people.
Elite Team Realty is here to make your investment dreams a reality. Whatever your needs, we'd love to chat with you and get you on your way to investing.
So contact Elite Team Realty today and see why we're one of Charlotte's top property management companies.