Build-to-Rent Neighborhoods Popular Among Property Investors

Blog posted On May 12, 2020

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