For many of you, investing in single-family homes will be the place you start because you know something about it. If you start with what you know, you can build on that experience and get comfortable with opportunities for other investments later when you have more know-how and capital. Here are some advantages of investing in a single-family home:
There are many single-family homes on the market:
Right now San Diego has a lot of opportunity, the plan was to make housing more affordable so that the 86% of county residents who currently do not own a property could realize a dream: to own their first home. Events happen in property owners' lives that indirectly create opportunities for you to invest in real estate: job transfers, unemployment, divorce, death, eminent default on the mortgage, coupled with an over-supply of housing, like they say, "some people make things happen, some people watch things happen, and some people stand around wondering what happened." Don't let opportunity pass you by!
The market for single-family homes is large.
The demand for homes and shelter is growing. As a result, you can usually turn a good deal around in a short period of time, especially if the sale is well structured or at a reduced price.
Limited management skills are required.
If you invest in apartment complexes the need for property management skills increases. Investing in single-family homes reduces that need so you are not in the position to handle too much dirty work! In most cases the property will be sold, assigned, or rented using specific contracts.
Single-famiy homes are easy to borrow against.
Home equity loans are fairly common in the single-family property market. This can give you fantastic opportunities for financing and pulling equity out of the property.
In conclusion
Make sure that you are clear about what and where you are searching. Do you want to rehab? Get into the foreclosure market? Buy and hold? Update and resell? Buy vacant land and build your dream home? There are many factors that go into finding a property that has potential to create an income stream in the future. When working with a Realtor, be sure to use one who has a good knowledge of the city's planning, targeted areas, grants and programs that are available to you.
;)
;)
;)
