Advantages of Single-Family Homes

Single-family homes are the most common type of real estate in America. They are also known as detached, single-family houses. Single-family homes generally have a single lot and one or more attached garages on the same property. The majority of these homes were built between 1940 and 1970.

In fact, they are one of the most popular forms of housing in many other countries as well. There is a reason for this popularity: single-family homes offer a great deal more than just an apartment or condo unit. They offer privacy, security, and comfort all in one package.

Here we will discuss the advantages of investing in single family homes with Nima Bendavood.

Tenant Turnover:

Nima Bendavood: The turnover rate of tenants in single family homes is approximately 6.3% per year. This means that, on average, every six years a household will move out and another household will move in. The overall turnover rate for all types of housing units is 7%. Therefore, tenants usually stay in a house for a relatively long period of time that can provide you with stable and reliable source of cash flow and income for a few years until the tenant moves out.

Work From Home:

In the recent years and after the Covid pandemic, many employees have been able to work from home instead of the office. Therefore, many apartment tenants in urban areas such as San Francisco were able to move into more suburban areas and rent larger single-family homes that are more desirable and less expensive. This has added to the popularity of this investment properties.

Appreciation:

It is usually considered to be the result of rising prices, but it can also be caused by improvements that are made to a property. Nima Bendavood says, when you buy or sell a home, you will want to know how much your house will appreciate in the future. You need to know if you should hold on to your home for as long as possible or if it would be better for you to sell now before the market may go down. In the case of single-family homes, historically there has been a very attractive price appreciation.

Vacancy Rates:

The vacancy rates for single family homes as well as other residential properties are historically lower than other types of real estate such as office, retail, and commercial. For example, the vacancy rate in Los Angeles is only about 3% for apartments which causes rentals to be in high demand and keeps the rental rates higher and making residential investments lucrative.

Originally Posted: https://nimabendavood.com/advantages-single-family-homes/