7 Reasons You Should Consider Investing in Single Family Homes

by Susan Paige on May 27, 2020 · 0 comments

When it comes to investing, it’s hard to beat property, specifically that of single family homes.

While duplex houses and multi unit buildings can generate a stream of income, they require more maintenance, managing several people, and likely lower rental fees compared to single-family housing units.  

Investing in single-family homes is an excellent option for all investors but especially for beginners. For each option, there are advantages and disadvantages. In this article, we will provide food for thought about why single-family housing units are great investment options.

  1. Higher Rental Fees

The rents for the housing units are higher compared to the rental fees for apartments. While the multi unit building can generate a stream of rental income that one has to admit comes with many additional responsibilities and duties.  

  1. More Manageable Mortgage

One may wonder why the single-family housing units are the perfect choice for first-time investors, and the answer is simple. These houses cost less than the apartment buildings and thus you will get a more manageable mortgage that you can cover with the rental payments per month. Single family home marketplaces like Roofstock make it easy to find property opportunities that suit you.

Besides the fact that they make a more affordable option, the appreciation value rises faster, and it will be a pleasure seeing the growth of the investment with the increase of the appraised value.  

  1. Payment of the Utility Bills

Single-family housing units have a significant advantage over the apartment building units when it comes to responsibility for paying the utility bills. Tenants who rent the single-family home are responsible and pay for the utility bills unlike in apartments where the landlord pays some of the utility bills such as electricity, water, or even the bill for gas sometimes. 

  1. More Financially Stable Tenants

Of course, there are different types of tenants at every level, but tenants who rent a house typically stay for longer periods and long-term. They appreciate the house as their own home which means that they are likely to take better care, repair, and maintain it in a good state especially if they see the option of purchasing it at some point in the future. On the other hand, people renting an apartment stay for a shorter period. This means you may face more turnovers and vacancy periods.

  1. Available Open Space 

One great advantage of the single-family home is the extra space they typically come with. Yards are a real bonus as people love having a space where they can spend their summer afternoons relaxing or where kids can safely play and spend time outside on the Sun as a family or even hanging out with friends. 

  1. Less Maintenance

Due to the size, single-family housing units require less maintenance compared to the multi unit dwellings that require many fixtures and appliances. Single-family residences usually need a laundry machine, a furnace, and a bathroom with a toilet. In contrast, the multiunit fixtures due to the number are more expensive; the whole process is time-consuming and might be frustrating—fewer things to take care of, more time to enjoy in life.  

  1. More Manageable Property

When you have to manage one house, it is much simpler and cost-effective. There might be some occasional repairs that you can do personally, especially if these are minor issues and you’re handy. Otherwise, you can also find professional service and make a deal for cooperation with them. 

If, on the other hand, you are working with multi unit buildings, there is a more significant deal of maintenance and management of the property. So you would probably need to hire a property management company or manager to handle all the issues that might arise and carry out all the responsibilities. This engagement will add expenses, and you have to consider these costs before you decide on making the real property investment. 

There is no one general rule for success in the market of property investments. There is not a guarantee that if you invest in single-family homes, you will start generating cash soon or you will have all positive experience with tenants. However, use the points made in the article as reminders when thinking of investing in property and why single-family houses are a better choice than the multiple units, especially for beginner investors. After you have built-up your portfolio and got experience with single-family homes, you can venture into multi unit buildings and diversify the funds to earn more. If you need an excellent place to start looking for your first investment in single-homes, make sure you visit roofstock.com. 

 

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