The Charlotte area real estate market is full of diverse opportunities for buyers and investors. If you’re looking to acquire a great rental property, you can find a number of single-family and multi-family properties available. Each type of investment home has its own benefits and challenges, and you might want to mix different types of investments to diversify your portfolio.
In the current market, the return on investment (ROI) you can earn on single-family homes is especially outstanding right now. When you maintain your home and keep it occupied with great tenants, you stand to earn even more.
Today, we’re taking a look at the ROI you can earn on a single-family rental property in Matthews, Charlotte, and throughout Mecklenburg, Union, Cabarrus, and Gastonia Counties.
Financing and Choosing a Single-Family Home is Easier for Beginners
If you’re not sure how or where to start investing in real estate, single-family homes are a good place to begin. You will find they have fewer start-up costs than buying an apartment building, for example. Investing in a single-family home will require less cash and you won’t have any trouble applying for and receiving a traditional mortgage. Residential purchases of single-family homes allow you to leverage a good amount of the mortgage. Your down payment will not be more than 20 percent. Taking out a commercial loan will require more cash.
Single-Family Homes Appreciate Better and Sell Faster
Demand for single-family homes in the Charlotte area is high. People are more interested in houses than in apartments or duplexes. So, you’ll be able to sell it with ease when you’re ready to let go of the asset or exchange it for something else. Prospective buyers will include owner/occupants as well as investors, so your pool of potential buyers is larger.
Single-Family Homes and Tenant Placement and Retention
Single-family properties are also in higher demand on the rental market.
This trend is only going to increase as demographics shift and older Americans sell their homes in higher numbers for a low-maintenance lifestyle. These sellers still want the space and privacy that come with a single-family home. Many tenants in Charlotte and Matthews are retirees who are trying to downsize and simplify their lives. Others are younger people who would like to buy a home, but cannot afford it or don’t want to give up the flexibility. Renting a single-family property is often the next best thing. The Millennial generation is beginning to start families, and many new parents prefer single-family homes over apartment buildings.
Tenant Retention and Single-Family Homes
Tenant retention is also higher when you have a single-family home.
Tenant turnover is expensive and inconvenient for real estate investors. The process of cleaning, maintaining, and marketing the property every year can be tedious and eat into your ROI. Tenants at multi-family rental properties are less likely to consider the rental their own home, while renters of single-family properties typically want to establish roots. Single-family rental properties encourage stability.
We’d be happy to help you analyze the potential ROI of any single-family home you’re thinking about buying. Contact us at Wess Cason Realty to talk about your investment goals. If you have any questions about property management in Matthews, Charlotte, or the surrounding areas, please contact us at Wess Cason Realty.