Are Single Family Homes Still Viable
The easiest investment for newbie investors to get started with is, Single Family Homes. However, in today’s market, is it still viable?
It’s the simplest method to just get into the market. You, the investor, pays for the mortgage, insurance, and property taxes. The tenant renting from you pays rent and utilities.
When starting out you want to pick an investment type that works for you and move you towards your real estate investing goals.
For example, single family home rental properties will work best in blue collar neighborhoods. By “work best” I mean that you’ll get more people calling you for this type of property than if you do a single family home rental property in a higher end area.
And the investor who gets the most calls wins. Almost everything is a marketing and numbers game.
This is one of the key real estate investing basics that I found out well after I started buying the properties. It’s worth repeating, the investor who gets the most calls wins.
So as long as you’re prepared to carry the property yourself longer than you would a smaller starter home you’ll be fine.
The other benefit to investing in single family rentals, is it allows you to zig where others zag. As most investors are investing in properties that have duplex or triplex opportunities, there is still a significant need for investors looking to rent a single family home.
While your cash flow won’t be nearly as strong, you will have a line-up of prospective tenants wanting to rent your property.
The real estate investing basics around the returns you can expect to generate from your investment are as follows: regular single family home investment properties purchased in the right area can produce cash flow, equity build-up (from the tenant paying down your mortgage), tax benefits and appreciation.
The best part about this is – you won’t even have to jump into a renovation either. What are you waiting for? Pull the trigger! It will be the best decision you’ve ever make!