As a real estate investor, there is money to be made in both single-family Saraland rental homes and multi-family rental units. The structure of your rental income, investment risks, and long term ROI is a little different with each class of residential rental property, but there are plenty of opportunities with each.
If you’re thinking about investing in Saraland, this is an excellent time to do it. The population is growing, there’s a strong demand for well-maintained rental homes, and your rental rate will be stable and consistent.
Your investment goals are unique, and you’ll have to decide whether a single-family home, multi-family property, or some combination of the two makes the most sense for you.
Attract Long Term Tenants and Higher Rents with Single-Family Saraland Homes
We always recommend single-family homes as good Saraland investment properties because they are consistently easy to rent to highly qualified tenants. You’ll lease to tenants who want these properties because they value privacy and space and because they like the idea of homeownership but they’re not necessarily ready to take on all the costs and maintenance that may be required.
Think about location when you invest in a single-family home. Tenants will be looking for good schools and proximity to shopping, restaurants, and entertainment.
Single-family homes also offer investors impressive appreciation potential. These types of properties always increase in value, and in Saraland, property values are on the rise. We see investors in the local market quickly cash flow a single-family home while building equity at the same time. The cost of a single-family home in Saraland is not as high as in some other markets on the east and west coasts, and you’ll collect a pretty consistent and reliable rent.
One of the challenges to owning single-family homes is that your maintenance costs may be higher. Even if your property is new or in good shape, you’ll probably spend a little more keeping it in excellent condition. There may be landscaping costs that you cannot pass on to your tenants. Unless you’re paying in cash, you’ll probably need at least 20 percent down when you’re looking for a mortgage, especially if you’re financing your investment through a traditional bank. Be prepared for these expenses if you decide to buy a single-family investment property.
Protect Yourself against Vacancy and Earn Quick Cash Flow with Multi-Family Homes
A multi-family property can be many things. You will have the opportunity to buy a duplex, a triplex, or even a small apartment building with a dozen units or more. When you invest in a multi-family property, you’ll have more than one tenant in place, which means you have more than one income stream.
This is the major benefit of investing in multi-family properties; you will have rent coming in from various sources. So, if one unit is vacant, you aren’t losing a lot of money quickly because you still have rental payments coming in from the other units.
You’ll earn income quickly with a multi-family investment. Most rental property owners find their cash flow is nearly immediate when the properties are priced correctly and occupied by reliable tenants.
There’s also the economy of scale working in your favor. When you need maintenance or landscaping services, you can contract with a vendor who is likely to provide a discount because of the volume of work you need. You’ll save time and money maintaining a single building with two or three units.
Tenant relations will be a factor with multi-family properties. Conflicts and disputes can arise between your tenants more frequently than they would with single-family homes. There might be complaints about noise or parking or trash or pets.
We think there are excellent reasons to invest in either type of property. The best decision for you will really depend on your investment goals. Our team would be happy to help you evaluate your options and find the right investment or combination of investments. Contact us at IRBY Property Management.