Real estate offers a wide variety of investment options. As an investor, you might be looking for properties that offer low purchase price, low maintenance cost, high profitability, and high appreciation. Although there’s no such thing as a perfect investment property, single family homes are a good option that’s close enough as long as it’s done right. Our team at Strategy Properties handle a wide range of single-family homes and we’d like to share some insights about them.
Things you need to look for:
It really doesn’t matter what type of property it is, the location is of key importance that most investors should be looking for. In the context of single-family homes, think about your prospective tenants – families. Families are attracted to houses located in areas with low crime rate, a friendly environment, and has good access to local amenities. Prioritize this criterion to increase your chances of profitability.
What are you planning to do with the property? Are you considering renting it out, a fix and flip perhaps, or maybe you’d want to go for the buy and hold strategy? The thing about single-family homes is that they have very high flexibility. The strategies that we just mentioned can be applied to any single-family property as long as you have the right knowledge on how to go about it.
Single-family homes are usually cost-effective when compared to other types of investment properties. Not to mention they require less maintenance. They don’t usually have a lot of commodities, unlike multi-family properties which can cost you a lot in terms of maintenance. Investors find it much easier to find financing options to use as well, especially when applying for a mortgage.
This goes without saying, you want to look for a property that benefits you in the long run. If you plan to take up a rental strategy for your investment, think of the property as if it’s something you own for yourself. Remember, tenants want a homey feeling. Single-family properties give that warm feeling of living in comfort inside a property that’s meant for you alone. If the house seem promising in terms of its overall condition, then it’s a worthy investment.
You want something that offers you high appreciation. This will serve you well in the long run if you decide to eventually sell it. Compared to other types of properties, single-family homes stand out in this regard. They also provide positive cash-flow since tenants mostly have to pay for their own utility bills, unlike other properties where the landlord has an obligation to settle them.
Convinced now? Here’s how to start investing in single family homes
If you’ve got everything down and want to start investing, we’re here to show you the right way to do it. The process isn’t that hard as long as you stick to it all the way through and keep a positive mindset.
1. Get your finances straight
It’s recommended to have a good credit and a viable cash reserve. Take care of any financial debt you owe. If you have any trouble getting yourself financially credible on your own, opt for partnering up with fellow investors or go with a conventional mortgage.
2. Find access to resources
In this case, finding the right real estate resources. You need to have at least the right education or research about single family homes. If you blindly rush in without prior preparation, this will eventually hit you in the end and you might suffer more than what you bargained for. Educate yourself on different real estate media which can either be books, blog, podcasts, or even webinars. Don’t be afraid of asking help from investors who have experience working with single family properties and partnering with them.
3. Time the right market
Don’t just rush in whenever you feel like it. Know that there are these things called seller’s or buyer’s market. A seller’s market is where there are more buyers looking to purchase than there are available properties i.e. the demand exceeds the supply. A buyer’s market is the complete opposite since the supply outnumbers the demand.
Sellers have the tendency to lower their prices during a buyer’s market since they want to secure a buyer for quick cash. As long as you time your investment well, you become a step closer to making a good profit for yourself.
If you’re planning to kick-start your real estate career, investing in single-family homes is the way to go. You want to start with the least amount of risk and starting cost as much as possible. Once you’ve gained the confidence and enough expertise in SFH Investments and you have proven success over it, you can venture on to different properties to diversify your real estate portfolio. Now then, what are you waiting for? Start it right by partnering up with Strategy Properties to ensure your success. Contact us at (734) 224-5454 or email us at firstname.lastname@example.org.