Posted on: 21 February 2020
Do you want to start out a new career as a landlord? Although today's landlords have many choices when it comes to investing in property, your best bet financially is likely to be single-family homes. How can this particular investment boost your finances and stabilize your business? Here are a few key reasons.
1. Lower Initial Cost. Buying one single-family home is a less costly investment than most commercial properties and multi-family homes. You'll have a lower down payment requirement than many other choices and more mortgage possibilities. Depending on your skill levels, you may also be able to do more repair and updating work yourself and won't be subject to business code requirements.
2. Higher Rent Prices. When you invest in multi-family units, you trade off lower individual payments for a higher volume. But when you're just starting out, higher individual rent can be a more valuable option. You won't have to worry about filling all the units all the time in order to keep your smaller business in the black.
3. Less to Care For. Landlords are, of course, responsible for the repairs, maintenance, and updating of their properties. If your budget is tight and you're still working to find good vendors and learning skills to care for tasks yourself, you'll have fewer expenses if you physically have less to care for on the property.
4. Simpler Bills. To start a business off well and grow it strategically requires that you be able to build a good system and manage your income/expenses. A single unit will keep things simple and allow you to learn the administrative and budgetary end of being a landlord. You can then add units incrementally and scale up your system so that you're in a better financial state as you grow.
5. Good Renters. You need a stable and high-quality tenant pool to make your landlord enterprise profitable. And renters of single-family homes tend to be the people you want. These renters will generally have a better credit history, more stable careers, and more interest in maintaining your property. Keeping a good tenant is less expensive than finding a new one — so the more you can keep people in place, the more you can build up a stable rental income to work with.
Which of these financial benefits of single-family homes could make your landlord experience better? No matter what you need in order to be successful, this type of property can help. Learn more today by consulting with a real estate agent that manages single-family homes for sale.Share