How To Get Started Investing With Single-Family Rental

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single family rental

Are you planning to get started with the single family rental? Then getting SFR real estate guide might be the way to go. It seems that real estate investments are attracting capital due to their ability to provide returns which are solid in a world where interest rates keep on falling.

The private equity, PE and real estate investment trust REITs funds have helped in boosting the returns for many investors in the recent past, while the long term and immediate benefits of investments which are direct in a single family rental (SFRs) have made them continue being attractive to institutional and small scale investors.

There are various things which make the SFR properties to be an asset which is attractive. The main one being, income properties do offer cash flow on a monthly basis. They also give long term benefits in terms of growth of equity and appreciation. There is an added benefit of leverage on rental property and thus, you have a chance to use money from the bank to grow your own money.

So if you are looking for SFR investments to add to your portfolio, here is how you can get started:

  • Assess Your Finances: You have to know how much finances you have. Are you able to qualify for a loan that is decent? How much down payment could you be able to make? It is also important that you are aware of your credit score. When you are looking around to secure a loan that has a low-interest rate, having a good credit score of above 740 and the ability to be able to make a down payment might help out with things.
  • Have A Plan: You need to take time to establish investment goals that are long term, and also create a plan for them. If you have already decided that you are going the SFR way, ensure you have your criteria outlined; knowing what type of criteria you are looking towards generating. After that, you will need to resolve to invest in a property that is able to meet your criteria.

It is important to remember that, a property that is inexpensive doesn’t indicate automatically that you have a good deal. The main aim is to have good returns, so there is a need for you to take your time and do your research and run the numbers for both expenses and projected income in determining the yield of the property and if it has potential as a good investment.

  • Start Small: There is no need for you to rush out and purchase several properties in the shortest time possible. Most of the real estate owners started small. There are some who even start out with a house with just a basement apartment, living in one unit while renting the other part. 

With such an approach, you might qualify for a first-time buyer mortgage which has better loan terms including an interest rate which is lower. It might also give you a better chance to learn the ropes before you start to add to your portfolio.