The Pros and Cons of Investing In Residential Real Estate
"Location and Timing" Are Worth Remembering When You Buy Real Estate.
When you buy or build in an area that is attractive to other home buyers, chances are the market value of your properties will increase more rapidly.
Important considerations and location factors include:
Proximity To Other Focal Points of Economic Development
Availability of public transportation
Overall prosperity of the community
Buying a home at different points in the housing market cycle also affects how the value of your property appreciates.
When you buy at the beginning of a housing boom, just as when you buy in the early stages of a real estate recovery in areas of Las Vegas and Henderson, Nevada, your gains may be rapid indeed.
Single family residential properties are more expensive per unit to purchase; although their overall cost to maintain is lower.
In regards to maintenance; a single family residential property fix benefits all of your tenants/occupants.
When purchasing a multi-family residential property, each individual unit may from time to time require their own repairs.
Single family residential real estate as an investment rental poses the risk of vacancy.
The risk of vacancy in multi family residential real estate is offset by other tenants/occupants residing there.
Single family residential properties will have more potential buyers to choose from when you decide to sell your investment rental properties later.
Multi-family properties typically have a larger pool of tenants.
The rent receivables in multi-family residential properties is typically lower.
An advantage of purchasing multi-family residential real estate is the convenience of only having to travel to one location to resolve an issue with a tenant, rather than driving to multiple single family residential property locations.
When buying residential real estate as investment rental properties, your trips to Las Vegas to inspect your properties can be written off.