Things have recovered well after Great Recession and the
remaining gaps are being filled with the passage of time. Hence, it is not a
risk anymore to invest in the single family homes now. Hence, earning the
profit through single family homes is not the bigger hurdle which couldn’t be
crossed.
Now, you may wonder why it is better idea to invest in
single family building than investing in multifamily apartment building. Well,
there are drawbacks such as bigger taxes, high maintenance costs, and low rent
associated with the apartment buildings. On the other hand, single family
buildings do not put you in the way of greater harm, and you get the higher
rent from a family.
The detailed reasons for investing in single family
apartment are as under.
Higher rent payment
As discussed above, you may be able to receive multiple
checks from your apartment building but those checks come with many taxes which
you would need to pay. On the other hand, rent from single family building
doesn’t go through bigger deductions.
Quicker appreciation
The major benefit of a single family home is that the home
appreciates pretty quickly as compared to the apartment building. And another major
benefit is that a single family building doesn’t cost much. Hence, the
investment in single family building is not the risky one. It means that you
will be easily able to manage your mortgage as incoming rent would be used to
cover the mortgage payments.
Utility bills
If you have been a landlord of apartment building, you may
be able to recall the times when you would be required to pay the utility bills
of your tenants. This is not the case with single family buildings as the
tenants would be wholly responsible for taking care of the utility payments.
Good tenants
It is quite easier to get good quality tenants in your
single family home. The reason is that tenants looking for single family homes
tend to live longer than the dwellers of apartment units. Hence, they are the
ones who take better care of your home.
Yard area
With a single family building, you get reasonable amount of
area which you can use as a yard. Hence, you can decorate the yard space in
order to make the property an overall attraction for the prospective tenants. Families
which look for the single family homes also look for the area they can give to
the kids for their playtime. This yard area is not just for kids but it can
also help your tenants host the evening parties at home.
Less maintenance
Since it is the smaller building for one family as compared
to the apartment building which tends to give living space to several families,
you can expect your single family home to demand less maintenance. Hence, the
costs of maintenance would also be quite low.
