Are you looking for a passive way to earn income without the headaches or late-night phone calls? Single Family real estate is the way to go! Single family real estate is the best real estate investing strategy for people looking to build a passive real estate portfolio with the least amount of time, risk and effort. There are 5 reasons why single-family homes are the best real estate investing strategy for you!
High Quality Tenants
Single family homes attract the highest quality tenants in long term real estate. Majority of single family tenants are young couples looking to start or raise a family in a great neighborhood and school district for their children. Single Family tenants tend to take care of the property and see it as their own compared to multi family and apartment complex tenants. Single family tenants tend to stay on average 3-5 years providing the owner of the property a low vacancy rate. Multi family properties and apartment complexes often have a higher vacancy rate and tenant turnover due to the low quality tenants those properties generally attract compared to single family properties.
High in Demand
The “American Dream” for most families includes the white picket fence, large backyard and space for the kids to play. Single family homes hit the market every single hour across the country. There are roughly 95 million single family homes in America. There everywhere! Single family homes are easy to sell and rent due to the fact that those properties are high in demand across the country specifically for parents looking to settle down and raise their children.
Appreciation
Historically, single family homes appreciate in value more than any other residential property including multi family, duplexes, triplex, and even apartments. Many homeowners and landlords prefer a single family home rather than a condo due to the HOA fees attached with purchasing a condo. Single family homes across the country appreciate between 3-5%, however many properties appreciate at a higher rate depending on the amenities, transportation, grocery stores, shopping centers and access to highways and interstates in the local area. Single family homes in major metropolitan areas like New York and Los Angeles appreciate over 9% year over year due to supply and demand!
Least Time
Single family rental real estate requires the least amount of time from the home owner or real estate investor. Many single family real estate investors hire a local property manager to manage the day to day operations of being a landlord including maintenance, collecting rent, tenant disputes, advertisement and filling vacancies. Build a strong professional team of experts including an experienced property management company to run your real estate business and limit the amount of time you spend actively involved in managing your real estate business. New real estate investors may self manage their first few properties to gain experience and confidence as a real estate investor.
Least Risk
Does investing in real estate sound too risky for you? Single family homes has the lowest risk involved compared to other residential strategies. Many experienced real estate investors began with a single family property and grew into bigger deals. Single family real estate is considered “entry level” for new investors looking to get into the game of building generational wealth. Single family real estate is the best investment strategy for investors looking to create passive income and build financial freedom!
Talking Real Estate Investing in Single Family Homes! 