.png)
Single Family Home Rentals, Are They Worth It?
Are you thinking of an alternative real estate investment? If so, a single-family home rental is an excellent option. This property generates a consistent and impressive wealth for stakeholders compared to cash, bonds, and stocks in the long run.
​
About 15 years ago and during a recession, single-family home rentals offer excellent returns through rental incomes and appreciation. The rental prices have also increased by 3 percent monthly for several years. In January 2019, the costs increased by 3.2 percent.
​
For sure, you are curious about what drives that growth. Homeownership declined a decade ago, while renters have increased because of the preference for flexibility, higher lending rates, and rising home prices.
Modern home dwellers are also inclined to rent rather than buy a residential property. In fact, almost 50 perfect of households with children in the US tends to rent than own a home.
​
Single-family home rentals can also make a better business sense. Below are some reasons why they are a smart investment:
Invest More Capital than You Have
Let’s say you want to make a $300,000 investment, but you only have $55,000 cash to spend. You can make that investment with single-family rentals through leveraging, which is an investment practice where you use borrowed money to increase returns.
With financing, whether a private investor, VA loan or mortgage, your $55,000 down payment enables you to borrow the remaining $245,000 to buy a home. Since you will collect rent and your property appreciates, it boosts your $55,000 up to five times the investment power.
Tangible Assets
As you probably know, land always goes up in value. Once you buy a single-family home rental, you are actually acquiring the land beside the structure built on it. While you will not find a foolproof market, real estate still provides something tangible to sell, rent, or inhabit for profit.
Less Volatile
In a matter of a few hours, stocks tend to surge and even plummet in the same frame. However, the housing market is less affected by national economic dynamics even if it is completely immune to fluctuations.
Excellent Source of Income
A single-family rental home rental requires upkeep, cleaning, and maintenance, but rental agreements often require the renters to maintain the property. If you find a dependable tenant, you can expect a reliable and steady income.
​
Suppose you wish to make your rental homeownership even more hassle- and stress-free. In that case, you can enlist the services of a property manager who will handle the tenant communication, rent collection, and even repairs.
​
If you have a property manager by your side, you will stay up-to-date and monitor your property even if you are a remote real estate owner. So, single-family home investment is still possible for you regardless of your location.
​
Are you ready to be a single-family home rental owner? This kind of investment offers a lot of advantages even if you are a first-timer. All you have to do is to have a trusted partner when it comes to growing your investment