After finally saving up enough money to use as a down payment, I decided that it was time to hit the market. I met with a lender, got pre-approved for a loan, and then started visiting different properties. However, I quickly realized that I didn't know as much about real estate as I would have hoped. I wanted to find a great neighborhood and know what to ask the professionals, but I could tell that I needed a little help. To point me in the right direction, I started working with a great real estate agent who was familiar with the area. This blog is all about educating the general public on real estate matters.
If you are a real estate investor who owns rental properties, you might want to expand by purchasing some single-family homes to use as rentals. Apartments and duplexes are the most common types of rental properties people purchase, but owning single-family homes can offer some outstanding benefits. Here are several benefits you can experience by purchasing single-family homes to use as rental properties.
1. You Can Charge More in Rent
When you compare the rental amounts of apartments to other options, such as homes, you will see a difference. Rental prices are associated with property sizes. Because single-family homes typically offer more space, you will have the opportunity to charge more for the rent. If the average one-bedroom apartment rents for $800 in your city, you might be able to charge $1,200 for a three-bedroom home rental. Charging more for the rent is the first benefit you have from investing in single-family properties.
2. You Can Supply a Demand that People Have
The second benefit is the ability to supply a product that people have a demand for in most areas. Some people can live in one or two-bedroom apartments, but other people need larger rental properties. There is almost always a demand for home rentals in all areas. If you own homes that you rent out, you can supply this demand. Offering homes for rent in addition to apartments provides a way for you to reach more people in your area that need rental properties.
3. You Might Have Less Work with These Properties
Another thing to consider is the amount of work you have with your rental properties. If you rent out a home, you can require the tenant to do the yard work and other work around the house. You include these requirements in the lease, and it relieves duties you normally would have to do.
4. You Can Create Long-Term Income for Retirement
The last thing to know is that you can create long-term income for your retirement by investing in home rentals. After you pay off the mortgage on the home, you will have a significant amount of money coming in each month from the rent. You can use this money to improve the property and for your retirement income.
After reading about these benefits, are you ready to find some single-family homes to purchase? If so, hire a local real estate agent to help you buy single-family homes.Share