The Pros And Cons Of Single Family Rental Properties
The Pros And Cons Of Single Family Rental Properties
When you mention the word "landlord" to most people the image they have in their head is of an owner of a multi family building. However many landlords, including myself, own single-family rental properties. Single family properties can make great rental properties however there are some pros and cons to owning single family rental properties. Here is a short list. Single Family Rental Property Pros
Fewer expenses as tenants are generally responsible for yard maintenance.
Tenants looking to lease a single family home usually have children so a good school district is important to them. This means they tend to stay longer than tenants how lease multi family.
A single family rental property does not always have to be a rental property so when it comes time to sell, your be selling at retail price and not at a discount to another investor as with multi-family properties.
Many single family home tenants have their own appliances so you may not need to supply them.
Compared to multi-family homes, a single-family home can have lower property taxes each year. Commercial real estate is usually taxed differently and tax values can be higher compared to single family properties.
Single Family Rental Property Cons
When a single family home is vacant there is NO money coming in. This lack of cash flow can be painful if the unit is not leased quickly.
Not every house is in a neighborhood that is without Homeowner Association (HOA) fees. In Frisco, TX 90% + of the subdivisions have mandatory HOA fees.
With single family homes as your rental properties, everything you have that can break multiplies. You have more roofs that can leak, more air conditioners that can go out.
Fewer economies of scale. The likelihood of an investor finding 10 single family houses built the same year with the same floor plan, heating system, plumbing and fixtures is virtually zero. With a 10 unit apartment complex all the light fixtures, toilets, countertops, paint colors and appliances are the same which can make repairs and upgrades less expensive.
Management could be more difficult as your properties are more spread out and not all under one roof.
“Invest in what you know.”
When getting started in real estate investing single family homes is what most investors are more familiar with. Although there may be a level of comfort with single family properties it is still a good idea to weigh the pros and cons before making an investment.When I am looking for a single family rental property here in Frisco TX, there are a few things that it must have.
3 Bed, 2 Bath under 2000 sq. feet
Good School District
Near to major highways
No more than 10 years old.
No swimming pool or yard requiring high upkeep.
Author:Nick Walton Phone: 469-556-2393 Dated: August 5th 2014 Views: 2,462 About Nick: I’m a Real Estate Professional by day, aspiring Tennis Pro by night.
I am originally from Londo...
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
General Inquiries: firstname.lastname@example.org
Office Number: 1 (800) 683-5651
Texas Real Estate Commission Consumer Protection Notice
Thinking of Selling? Now Is the Time to ActIf you thought about sellin
"John was extremely patient, forthright and professional all during our working relationship. He was courteous with my wife and son while thoroughly answering every question that we would raise. John was very responsive to our numerous request for showings and always was timely and followed through on all leads. I would highly recommend John as your agent, regardless of the scope of your purchase. He will represent you very well in one of the most important decisions that you will make."