You might have decided that investing in rental property is a good strategy for your future. What you might not be sure of yet, though, is the type of property that you want to purchase. Many first-time landlords invest in smaller multi-family properties, and this is an option that you will probably at least want to look into. However, after you consider these benefits, you might find that buying a single-family home as your first rental property might actually be an even better idea.
1. You Can Keep Costs Lower
Investing in real estate is not cheap. This doesn't mean that it's not worthwhile, but you should be careful about getting in over your head financially. After all, investing in real estate is supposed to be something that will help you make money, not something that will put you in a financial bind. Multi-family properties are often more expensive than single-family homes, and maintenance, taxes, and other costs can be much higher, too. You can keep costs more affordable by investing in just one single-family rental property, at least until you are able to bring in a profit from your initial investment.
2. It'll Be Less Overwhelming
Owning and taking care of just one property can be a whole lot of work. If you purchase a multi-family rental property in the beginning, you might find that keeping up the property, managing tenants, handling bookkeeping, and more will be more than what you are hoping to take on. You can keep things a little less overwhelming and a lot more manageable by investing in a single-family home to rent out instead.
3. You Can Provide a Desirable Rental in Your Area
Lastly, you should know that there are a lot of renters out there who like the idea of renting a single-family home rather than an apartment. In many areas, it can be tough to find a single-family home to rent; instead, many renters might find that most of their options are in apartment buildings. If you invest in a single-family home to rent out, however, you can provide a desirable rental in your area. This can help a potential renter find a nice, comfortable home to rent, and it can help you ensure that your property will be rented quickly.
If you are ready to purchase your first rental property, you might want to stop looking at multi-family buildings. Instead, it might be time for you to take a look at some of the single-family homes that are available.
For more information about single-family homes in your area, contact a company like Weichert, Realtors - Bev Young & Associates.