Real estate investment is one of the most profitable ventures in the business world today. It’s a sector that offers high returns on investment when done right.
Real estate investors can choose from different types of properties to invest in including commercial, multi-family, and single-family homes. However, single-family homes are the most preferred investment option for many real estate investors.
A single-family home, also known as a detached home, is a stand-alone structure that sits on its lot, separate from other properties. A single-family home typically features a yard, garage, driveway, and, sometimes, a pool. These homes range from modest to luxurious, with prices varying based on location, size, and other features.
In this article, we at Keyrenter New England will look at the benefit of buying one as an investment property!
1. Easier to Sell
Single-family homes are easier to sell compared to multi-family homes or commercial properties. The market for single-family homes is larger, with more potential buyers. Additionally, single-family homes are more attractive to individual buyers looking for a place to call home.
Real estate investors can take advantage of the high demand for single-family homes to rent them out and/ or sell them for a profit.
2. Affordable and Faster Appreciation
Single-family homes are more affordable than multi-family or commercial properties, making them ideal for first-time investors. Additionally, single-family homes appreciate faster than other types of rental properties. Real estate investors can benefit from the appreciation of single-family homes by holding onto the property for a few years and then selling it for a profit.
3. Compatible with Many Rental Strategies
Single-family homes are compatible with various rental strategies, including long-term, short-term, and vacation rentals. Real estate investors can choose the best plan for their needs and preferences. Long-term rentals provide a steady stream of rental income, while short-term and vacation rentals offer higher rental income during peak seasons.
4. Easier to Finance
Financing a single-family home is easier as lenders are more willing to provide loans for single-family homes since they are less risky.
Additionally, single-family homes tend to be more affordable, making them accessible to more real estate investors. Real estate investors can take advantage of various financing options, including traditional mortgages, FHA loans, and VA loans, to acquire single-family homes.
5. Easier to Manage
Single-family homes are easier to manage than other rental properties due to their smaller size. Landlords can focus on the needs and concerns of a single household, which reduces the workload and stress associated with managing multiple tenants across several units.
With a smaller property size, landlords can easily inspect and maintain the property regularly. This ensures that maintenance issues are addressed promptly and the property remains in excellent condition.
The ease of management of single-family homes makes them an ideal investment option for real estate investors who prefer to manage their properties actively.
6. Attract Higher-Quality Tenants
Single-family homes tend to attract higher-quality tenants compared to multi-family homes or commercial properties. Individual tenants are more likely to take better care of the property since they consider it their own.
Tenants who rent single-family homes often look for long-term rentals. This provides stability for the landlord and reduces costs associated with tenant turnover.
7. Easier Utility Bill Setup
Single-family homes offer a convenient utility bill setup for both landlords and tenants. The landlord can transfer the utility bills to the tenant’s name, which simplifies the process of managing and tracking utility expenses.
Moreover, tenants of single-family homes are typically more responsible and conscientious about paying their utility bills on time since they are responsible for the entire bill. This reduces the likelihood of late payments or unpaid bills.
Additionally, landlords can avoid the need to include utility costs in the monthly rent, which can make the rental price more attractive to potential tenants. Ultimately, this can make it easier for landlords to attract quality tenants and maintain profitable rental properties.
8. Require Less Maintenance
Single-family homes can require less maintenance than other types of rental properties. This means the landlord has to focus on addressing the needs of just one property’s inhabitants. This translates into fewer maintenance issues to attend to which can save landlords time and money.
Tenants of single-family homes often take greater care of the property and are also responsible for maintaining the yard and landscaping, meaning landlords don’t have to worry about hiring landscaping services or spending their time maintaining the property.
This can help reduce maintenance expenses, which can be a significant advantage for real estate investors looking to maximize their ROI.
Single-family homes are a popular investment option for real estate investors. They are easier to sell, more affordable, and have faster appreciation than other rental properties. Additionally, they are compatible with various rental strategies and are easier to finance and manage.
Single-family homes also tend to attract higher-quality tenants and generally require less maintenance, making them an ideal investment option for real estate investors.
At Keyrenter New England, we provide property management services and offer customized solutions for real estate investors who are looking to have their properties managed efficiently. Our team of experts is knowledgeable in the real estate industry and can help investors navigate the complex real estate market.
We provide high-quality services, including tenant screening, rent collection, maintenance, and accounting. Contact us today to learn how we can help you maximize your single-family home investment!