Build-to-Rent Neighborhoods Popular Among Property Investors

Investors who buy to sell, buy a home for a low price, improve it and sell for profit. Investors who buy to rent, rent the home and earn a profit over time.

Build-to-Rent Neighborhoods Popular Among Property Investors

Posted by Mike Dein - 2020-05-13 09:36:00

 

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.

 

Access to Financing

Most real estate investors will finance their home purchase with a mortgage. In today’s low rate environment, your real estate investment could be more affordable than you thought. With down payment options as low as 3%, you can buy a single-family rental home now and lock in a low mortgage rate. 

 

As you pay down your mortgages, on your primary residence and on your investment property, you’re building equity in your assets that you can potentially withdraw at a later date and use to fund other investments.

 

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 #omahamoveshere

Loading Conversation
×

Subscribe to Omaha Moves Here Mailing List

* indicates required
Email Format

View previous campaigns.