Are you planning on buying a single-family rental property but don’t know if it will make a smart investment for you in 2019? The good news is that in spite of economic uncertainty, single-family homes still make an excellent investment.
Reasons to Buy Single Family Homes
Tenant Stability – Most people who rent single-family homes are typically more stable than people who rent multifamily properties because, a tenant who lives in a single-family home is prone to lay down roots in the area where they live and view that area as their “home” especially if their children go to local schools and have friends in the area.
Higher Rent – Single family homes typically rent for higher rents than multifamily rental properties.
Higher Appreciation – Historically, appreciation is always higher for single-family homes vs. multifamily rental properties. Why? Multifamily properties are valued on the rents that come in and the condition of the property while the single-family home is valued on supply and demand of owner-occupied buyers.
Easier to Finance – When you buy a single-family home you can typically finance the property with a 30-year fixed loan while a 5-unit multifamily property would require a commercial loan and a higher down payment.
73% Of High Net Worth Investors Want to Invest in Single Family Homes
Single-family rental properties are at the top of real estate and of interest to a whopping 73% of high-net-worth real estate investors, as stated in the Millennium trust study. Some trends believed to be causing the interest (and continued growth) include downsizing baby boomers, as well as millennials choosing to rent longer so they can keep their options open
Contact RPM Central Valley
Are you interested in property management for your Central Valley rental property? Contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.