When deciding to become a real estate investor, you have a lot of potential investment properties to choose from. Many real estate investors choose to buy multi-family homes, vacation condos, or apartment buildings, for example. When deciding on a real estate investment, be sure not to overlook single-family homes. Single-family homes offer many benefits for investors without some of the frustrations common with other types of properties.
Singe-Family Homes Tend to Appreciate More Quickly
The biggest reason investors like real estate is that it's a reliable way to make money and build wealth over time since, in desirable markets, houses tend to appreciate quickly. Single-family homes typically appreciate faster than condos or multi-family units. This means that your new investment property may be worth quite a bit more than you purchased it for in just a few short years.
You Don't Have to Deal With Multiple Tenants
A major benefit of investing in a single-family home is that you can rent it to long-term renters and won't have to deal with multiple tenants at once. When you only have one tenant (or a family), communicating with them, ensuring repairs are made in a timely manner, and other landlord responsibilities will feel manageable.
On the other hand, with an apartment building or multi-family unit, you will need to hire a property management company to keep things running smoothly and may still find being a landlord overwhelming.
Your Home Will Likely Not Have Much Wear and Tear
It can be very disheartening to buy a beautiful rental property only to find it in disrepair a year later. With vacation rentals or multi-family units, you will likely see more wear and tear than with a single-family home, simply because of the larger number of tenants and greater turnover.
When renting your single-family home, you can be sure to choose your renters carefully, including checking their former rental references. This will help ensure you rent your single-family home to renters who will treat it like their own home, with care and consideration.
Single-Family Homes Are Great for New Investors
Another benefit of buying single-family homes is that they're ideal for new investors. The purchase process and being a landlord will be more straight-forward than with an apartment building or multi-family property. Once you get the hang of things, you can consider adding these other types of properties to your portfolio.
If this all sounds good to you, start with a consultation appointment with a real estate agent who knows more about buying single-family homes as investment properties.