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Build-to-Rent Neighborhoods Popular Among Property Investors

Posted On May 12, 2020

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When you invest in real estate you either buy to sell or buy to rent.  Investors who buy to sell will buy a home for a lower price, renovate or improve it to add value, and sell for a profit.  Investors who buy to rent, rent the home to a tenant and earn a profit over time.  Real estate investment is often considered a more stable investment than the stock market because homes and property tend to appreciate in most market conditions.  Single-family rental homes particularly have become a popular investment, so much so that some housing developments are being built exclusively for renters. 

Are you considering a real estate investment?  The Forbes Real Estate Council identified these three reasons to invest in a single-family rental home.

Cater to the Millennial Market

Millennials aged 24-39-years-old have reached the age when people traditionally establish households and buy a home, yet they are facing an uphill battle with homeownership.  Historically high student loan debt makes saving for a down payment difficult, yet young families are starting to outgrow apartment living. 

Many Millennials who are ready to branch out on their own but aren’t able to save for a down payment are turning to single-family rental homes.  Young couples and families make great stable renters because they will typically stay in the home longer and pay on time, giving you the opportunity to earn a passive income for many years.

 

Easier to Sell

When you’re ready to sell, your single-family rental home will be easier to sell than a multifamily home or a large apartment building.  When you’re selling your single-family rental home, you’ll have a wider pool of potential buyers including owner-occupants or other property investors. 

If you’re considering buying an investment home, let us know.  A single-family rental home could be a great opportunity to earn extra income and build equity, especially in today’s market. 

 

Sources: Forbes