A single-family home is an investment that can yield huge profits. It’s generally low-risk and appreciates faster than other types of residential properties.
Before you start looking at homes for sale in wonderful neighborhoods of San Francisco like Noe Valley, St. Francis Wood, or Pacific Heights, it pays to understand why a single-family home is a sound investment decision. Listed below are several reasons.
It’s manageable
A single-family home is a great investment decision for first-time real estate investors. Compared to renting out multi-family homes, it’s less of a hassle to manage. You won’t have to deal with several families and their requests and issues regarding their respective units – you only need to deal with one. If repairs are required and you don’t have time to attend to these, you can easily call in a contractor to do said repairs.
Another plus is that you don’t need to carve out a budget for a property manager since you’ll be able to handle the caretaking yourself.
It attracts more responsible renters
Single-family home renters are, by comparison, far less of a headache than apartment renters. The former are more willing to shell out higher monthly dues than the standard apartment tenant. As such, they will value the home they’re paying for by keeping it in optimal condition through constant maintenance and cosmetic repairs.
Single-family home renters are also known to pay rent on time and to commit long-term, as well. The long-term lease and the higher rent payments translate to you recouping your investment in no time. Moreover, if they enjoy their stay in your home, they may signify their desire to purchase the property in the future. That will spell a huge bonus for you.
To top it all, you won’t have to worry about dealing with a variety of personalities as you would in an apartment situation. Your transactions will only be relegated to just one family.
It increases in value faster
When compared to a multi-family home, a single-family home generally appreciates much faster. This is primarily due to the entry of more Gen Zs and millennials into the housing market in recent times. As their numbers increase, so does the demand for smaller and more affordable homes.
Industry observers have also noticed that baby boomers have been following suit, downsizing their homes to fit the essentials and to shed off excess monetary and lifestyle obligations.
Given the higher rental payments on a single-family home due to its higher value, paying off the mortgage won’t be a big problem.
It has you set for the long term
Investing in a single-family home is a long-term game. You have to take stock of the market over a long time span and carefully consider expenses and projected profits.
Don’t be dismayed or get overly excited by momentary market fluctuations. Over time, if you play your cards right, you’ll have a stable source of revenue that appeals to different types of tenants and home buyers.
Let me help you get started on an investment in single-family homes by making me your guide and trusted advisor. Call me, Amir Hardy, at 415.602.0570 or send an email to [email protected].