When it comes to alternative investments and wealth generation avenues, single-family rentals are tough to beat. The real estate income from a single-family rental alone can be quite impressive. Compared to the volatility of playing the stock market, rental properties have generated a consistent amount of wealth for stakeholders over time.
The demand for a single-family rental will almost certainly increase (and rent prices along with them). Anyone looking to supplement their income should look no further than single-family rental properties. Below are all the reasons why.
Single-Family Rental: Focusing on Rental Property Investments
Home-ownership has declined steadily over the last decade. However, the number of renters has increased. This is due to rising home prices and a preference for flexibility. Due to the shift in these trends, single-family rentals (SFRs) are being utilized by many as conduits to create passive income streams.
What is a Single-Family Rental Property?
Single-family homes are a unique real estate asset. These detached homes often include a yard and a garage. Compared to other property types, SFRs are easier to purchase and manage (especially with the help of Gainesville property management in Florida), and tenants usually have more of a sense of ownership that encourages them to stay longer.
Single-family homes offer important advantages over other rental property types. For instance, you can invest more capital than you actually have. Through the process of leveraging, you can build equity in your property as it appreciates. Put simply, it requires less initial investment capital to buy your home, even if you intend to own your home outright sooner rather than later. And, land should always go up in value (because they’re not making any more of it).
It may be true that dollar for dollar the stock market has performs better than the real estate market. However, it shouldn’t be overlooked that real estate experiences fewer peaks and valleys. This demonstrates how SFRs are a more stable investment. This is due to the fact that there is just less risk with a real estate investment.
Put even more simply, single-family rentals:
- are tangible assets with less volatility
- provide a monthly income stream through the collection of rent.
You can protect your revenue streams from inflation as well since real estate values increasing a faster rate than inflation.
Money While You Sleep
SFRs are considered an ideal source of passive income. This is the money earned with little or no effort. With a dependable tenant who enjoys living in your property, you’ll literally be earning money while you sleep.
Dollars Making Sense
With more people opting for renting SFRs to fit their lifestyle and living accommodations, the time is now to start making your money work for you.
What if you aren’t a homeowner yourself?
No problem. Many owners of Single-Family Rentals are renters themselves!
Often, the income generated from owning a Single Family Rental offers the flexibility and means to let the owners of these rental properties pursue other interests and hobbies, such as traveling. With the help of property management firms handling repairs, tenant issues, and administrative processes, owning and maintaining a Single Family Rental has never been easier!
What would you do if you could create a passive income, and possibly quit your job? Many SFR owners earn reliable rental income without even seeing their property in person.
In our society today, where many people choose home-ownership above their means (effectively rendering them “house poor”), investing in an SFR and renting for yourself, is becoming increasingly popular. Using Single Family Rental properties as a road to financial independence is not only a savvy investment strategy but will allow you to work less and live more for the passions that bring happiness to your life. That’s something that everyone wants– more money for less work.
Have you thought about investing in a single-family rental property? Why or why not?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.