Warren Buffet once said that he would purchase “a couple hundred thousand” single-family properties. That’s how good of an investment they were.
Are you an investor looking to invest in single family property?
You are probably considering a few sources and wondering how you can make the most profit.
There are plenty of investment opportunities available, but nothing beats investing in a single family rental property.
Read on to learn why it’s best to invest in a single family property over other investment properties.
You’ll receive more cash flow when you invest in single family property
When choose to purchase single family homes, you often get them for a better deal than if you were to purchase a multi-family home.
Because of this, your mortgage payment will be less.
Many people believe that their renters will simply pay their mortgage. But if your mortgage payment is $300 a month, and you’re charging rent at $600 a month, you are easily making $300 as a profit.
Plus, if you decide to sell the property in the future, you are increasing your profits. Single family homes generally increase in value much quicker than multi-family properties.
There are tax benefits with single family homes
Owning an investment property is considered income. But it isn’t considered a form of employment so you aren’t subject to that tax.
You can also deduct your mortgage interest on your taxes. Other taxable items are appliances and any repairs done on the property.
So while you are earning income, you are also able to gain the tax benefits.
Single family homes are easier to care for
Imagine if you invested in a multi-family property and every tenant had a leaking faucet or broken appliance.
This would cost you money and take up a lot of your time. You probably wouldn’t have much time to do anything else.
The great thing about single-family home investments is they are generally easier to care for.
You only need to be concerned about one property and one tenant. This way you are not overwhelmed when a problem arises.
This also comes in handy when you’re collecting rent or dealing with tenants.
You’re investing in your hometown
When you invest in a single family property, you are helping improve your own neighborhoods.
Not only are you able to focus on the upkeep and make your town beautiful, you are also providing safe housing for those in your community.
Investing locally means that you’re supporting the people and businesses within your community.
As an investor, you are always looking for new prospects. And one of the most promising prospects is to invest in single family property.
These properties bring in money quickly, and they are easier to maintain than commercial or multi-family properties.
Plus, you are making an investment in your local community.
If you are interested in investing in a residential property, there are professionals who can help.
Reach out to Clockwork Property Management today to see how they can help with your new investment.