Why investing in single family rentals is a good idea

There are several different types of real estate investing. One type that’s often thought to be less profitable is the single-family rental. The reality is, however, that single-family rentals can be quite profitable. In fact, single-family rental rates have increased significantly and steadily since 1985 and are predicted to continue doing so for several years. Here are a few more good reasons to get into single-family rentals to grow your investment portfolio. 

1. Single Family Rentals Rival Stock Returns But With Far Less Risk 

The returns associated with single-family rentals often rival those of the stock market. Furthermore, this type of investment has higher returns than the bond market, too. The big difference between these investment types is despite the peaks and dips common in the stock market, the returns on a single family investment tend to remain steady, even when the real estate market struggles. 

2. The Rental Market Is Booming

It’s become much cheaper to rent than to own these days, which means big business for those with rental properties. If a single-family rental is situated in an up-and-coming area where jobs are plenty and amenities are convenient, a single-family rental owner could potentially see a really nice return on their investment. 

3. Pockets Of Opportunity Are Cropping Up Everywhere

While some rental markets aren’t faring so well, others are booming with opportunity. Areas that do extremely well include those that follow job growth, so be sure to do some research before buying a single family rental. Ideally, the community surrounding the rental should be seeing continued growth that’s sure to attract people looking to rent. 

4. Cash Flow Is Eminent

As with any investment opportunity, you must spend money to make money. This means you have to play the game if you hope to win. The nice thing about single-family rentals is that there are properties to fit almost any sized budget. Whether you’re looking to spend $50,000 or $150,000, you can find an investment opportunity. Remember, the sooner you get your foot in the door, the sooner you can start seeing a positive cash flow on a consistent basis. 

People use a number of investment strategies to make money, but many of these strategies have associated risks that for some, are just too great. Real estate investing is a less-risky investment opportunity, with single-family rentals being a great idea. Consider the four reasons listed above if you’re looking for your next investment opportunity.