I keep seeing these ads that say “Don’t invest in single-family rental properties!”
Well, I hate absolutes for ANYTHING.
Listen, my wife and I own both apartments and single-family rental properties … everything from houses to 16-unit complexes. We own 71 units with another 16 closing next month.
3 Reasons Why Single-Family Rental Properties Can be Great Real Estate Investments
Even though we mainly invest in apartments today … I still love our single-family rental (SFRs) properties for the following reasons:
1. Lower barrier to entry than apartments.
Most lenders want to see experience or significant capital when you buy an apartment. SFRs are easier to get into if you have the debt-to-income ratio to qualify.
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2. Fixed rate LONG term debt.
Most of my SFRs have a mortgage that’s in the 3% range and it’s FIXED over 30 years.
3. More flexibility.
I own 4 beautiful homes in Royal Oak and Wixom and I could probably sell them within a week because they are in great areas and a family would live in them. Or, an investor could buy them. Apartments will only be sold to investors, so you have a smaller buying pool.
What are the BEST Properties to Invest In?
Ultimately, the answer to this question comes down to this … the BEST investment property is the one that fits YOUR goals and your needs.
Don’t think so myopically that you ONLY should buy apartments … or that you should ONLY buy duplexes, etc.
Apartments are great.
Duplexes are great.
And single-family houses are great.
What works for YOU is the real question!