5 Ways A Single Family Home Is A Flexible Investment
Posted on: 9 April 2021
If you want an investment that provides flexibility no matter what the future holds, investing in a single-family home could be just what you're looking for. Here are a few ways this hybrid investment could both protect your interests and grow your wealth.
1. Single Family Homes Are Affordable Investments
First, for anyone looking to get into the lucrative landlord business, a single-family home generally provides the easiest entry point. These properties are more affordable than most multifamily housing choices and most commercial real estate. You may even be able to secure one with a standard mortgage, as well.
2. Single Family Homes Provide Immediate Income
As an investment, real estate is a great way to begin making money immediately. Individual homes are also a generally reliable form of income because of the high demand for this type of home. While you will only get income from one tenant at a time, this tenant pool is generally more stable and has less turnover than multifamily units.
3. Single Family Homes Appreciate and Provide Income
Of course, rental income is not the only way a detached house adds to your assets. It also appreciates in value over the years while earning an income. So you could focus on crafting a stable monthly income now or on building the value of an appreciable asset to set later. For instance, you might reinvest profits into adding on or upgrading so that the value will be at its peak when you sell it as a retirement asset.
4. Single Family Homes Can Be Your Residence
Unlike most investments, a rental house can be a physical abode as well. You can buy one to live in as a primary home before renting or turn it into your primary home at any time in the future. Some people also invest in a rental home early with the plan to customize it over time and use it as a primary home during retirement.
5. Single Family Homes Are a Stable Market
An investment isn't very valuable if you can't sell it when you want or need to. But single-family homes are generally always in demand and have the largest pool of potential buyers. You can sell it to either another investor or someone just looking for a home in a location they like. This increases your pool and the flexibility of how you sell it.
Could the flexible investment of a single-family home provide your portfolio with just what it needs? No matter whether you want to build wealth, pay for current expenses, or have a backup plan, the options are nearly limitless. For more information, contact a company like The Carrie Holle Group - Carmel Real Estate.
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