Single-family investment properties are the most common type of real estate investment. However, there are some pros and cons to consider before buying. To learn more about it and to find out if it is the right niche for you, check out our latest post below!
If you are thinking about making a real estate investment, you might automatically think of buying a single-family home. While this is an excellent choice, there might be a few things you haven’t thought about. As buyers and sellers of Fort Myers real estate, we have put together a list of things you may not have considered. If you have any questions about investing in Fort Myers, please reach out to us any time!
Pros:
Resale Value
Single-family properties generally have a tendency to appreciate over time, maintaining their value more consistently compared to rental properties, which can experience greater fluctuations. There’s typically a steady demand for single-family homes, unlike some other types of real estate. Should you choose to sell in the future, odds are you’ll likely make a profit and encounter fewer challenges in the selling process compared to other property types. Moreover, you have the flexibility to walk away from the property at any time or to choose to reside in it yourself, providing you with various options for its use.
Lower Taxes
Single-family homes typically have lower property taxes than their multi-family counterparts. This will allow you to keep more cash in your pocket each month, without having to worry about excessive tax bills.
High-Quality Tenants
People renting a house as opposed to an apartment tend to stay a bit longer. They might be saving up for a home of their own or they have a family they don’t want to move around. Having tenants in place, without any vacancy will greatly improve your ROI. When you have good ones living in your home, it makes your job as a landlord easy. Be sure not to give them any reason to move!
Low Maintenance
There isn’t much maintenance of the standard single-family property. So long as things are all in working order when you rent out the house, the tenants you have in place should take good care of it if they want to see their deposit back. And if they don’t, it can be a violation of their lease, resulting in eviction.
Cons:
Vacancy Hurts
If you lose your tenant and are unable to find a replacement, your income from the property will cease, leaving you with zero revenue. Additionally, you’ll be responsible for covering expenses typically borne by the tenant, such as electricity, water, and other utilities. After all, maintaining basic services is essential when showcasing the property to potential new tenants. This is indeed one of the risks associated with owning a single rental property. However, it shouldn’t deter you from purchasing; rather, prioritize finding reliable tenants as your foremost objective to mitigate this risk.
HOA Fees
Depending on the community, there might be HOA fees to contend with. These can rise over time, so make sure you have a true understanding of the costs and what the HOA will cover. There can be special assessments added as well, so be sure to keep up with what is going on if you do not live within the HOA’s jurisdiction. Your tenants will also need to abide by the rules of the HOA. If they are in violation, it can come back to bite you.
Single-family homes in Fort Myers are a wonderful way to add value to an investment portfolio. Core Real Estate Solutions can help with your questions as well as show you some of the best rentals in town!