1. Low Turnover Rates
Lower turnover rate is one of the key benefits in single-family housing. Vacancy equals loss of income as well as expenses making the property ready for the next tenant.
Each that a tenant leaves, there will be additional costs of new paint, carpeting, hardware and more. Considering the fact that single-family homes have a much lower turnover rate—there will be significantly less monetary rise due to vacant space.
2. Holds Resale Value
A single family home that is well-maintained and located in an ideal neighborhood usually commands a higher resale value. Homes that are located in neighborhoods with failing economies, high crime rate and low school density can lose value quickly.
3. Lower Property Taxes
Compared to multi-family homes, or apartment buildings, an independent home can have lower property taxes. Usually, the commercial real estate is taxed differently and tax values can be greater when compared to single family properties.
4. Lower Costs to Manage
Because individuals or small families reside in single family homes, the total expenses to manage your properties can be quite less on an yearly basis. Tenants who take good care of properties can minimize the change of repairs required with every lease renewal.
The appreciation potential in single-family homes is higher compared to the likes of apartments. Single-family homes aren't locked strictly to cash flow. Depending on comparative sales in the area, their values can differ. Also, since it does not include shared space, keeping the conditions well maintained becomes easier.
6. Equity Growth
If you have an amortized loan, each time you pay your mortgage, some part of that payment goes adds to your principal. Your single family rental property is just like your savings bank where you can make a contribution each month. Depending on your loan amount, interest rate and term, it could benefit you and it only gets better each passing year.
7. Financing Options
In the market today, lower interest rates and higher loan-to-value (LTV) ratios can be easily obtained and are actually faster for single-family home.
With a fall in the median home prices, renting demand rising and the high potential in appreciation, investing in single-family housing is a wise decision. If you are searching to use investment properties as a retirement fund, college fund for the kids, or additional income, you can invest your money into opportunities for single-family homes first, followed by other types such as multi-family, condos, etc.
Have more questions about investing in a single family rental business? Rental Home Financing offers you a range of refinance and mortgage products that help increase the equity of your portfolio. You can easily build high income yielding portfolio that sustains for a long time. Visit us today at https://www.rentalhomefinancing.com/ or talk to our experts over phone at 888-375-7977.
Feel free to speak with our specialists to know your options.