SFR rental properties are a GREAT way to start investing in real estate and many of my NEW clients are renting homes that they can not SELL and will be renting when they move from the area...easy to get comps, easy to finance and GREAT to RENT!
Single-Family Homes for Rentals
Single-family homes used for rental property have distinct advantages over other types of investments.
An investor can borrow 75-80% at fixed interest rates on appreciating assets with definite tax advantages and reasonable control. The financing alone is attractive compared to some investments that require 50% cash and have floating rates at prime plus for one or two years.
Home prices have adjusted 30-40% around the country, mortgage rates are incredibly low and rents have risen in the past two years due to more demand and shorter supply. Indicators like these point to a strong and sustained rental market.
Consider you bought a $125,000 home for cash that would rent for $1,250 per month. With $15,000 income and allowing for property taxes, insurance and maintenance, it is still reasonable to expect $10,000 net income.
You'd have an 8% return on investment without considering tax savings or future appreciation compared with 5-year CDs paying less than 1.5% and a 10-year Treasury yield at 1.65%.
The reasonable control has a lot of appeal to many investors who find the volatility of the stock market unacceptable and don't want the risk associated with some of the alternative investments.
Please contact me if you'd like to know more about available opportunities
Buy or Sell with Chris and Patty Clark Denver, Co
If you would like for us to send you properties on a daily or weekly basis just call or email us and let us know your wants and needs. We will match them with a home you love and with monthly payments you can afford. We specialize in first time home buyers.