Single-Family Rentals: A Good Deal for Investors

Investing in Single-Family Rental Homes

Source: National Association of Realtors® (NAR)

When real estate professionals or investors think about a rental property, they picture multi-unit apartment buildings – but they should envision single-family homes. Single-family rentals have increased by 31% in the past 10 years and make up 42% of the housing stock.

When investors buy a house to flip, they have the cost of buying, repairing and selling it. When they buy a single-family rental, they only have acquisition costs.

Single-family rentals are a good way for entry-level investors. They’re generally less expensive and families that rent them typically stay longer, reducing turnover costs – and investors usually don’t have to do as much renovation to make a rental attractive.

Additionally, rentals offer three financial benefits: income, equity, and appreciation. You look for the ROI (return on investment). A simple rule – whether you’re selling or buying – is the 1% rule. If the rent is 1% of the sale price, it’s a good return and a good investment.

All County Marion Property Management is here to answer your questions and help you with all your real estate needs (352) 414-1855