Have you looked at your stock market portfolio lately….or your mutual funds statement? Or have you chosen not to and just living in denial?? Many investors have taken the recent news about the shaky stock market as a reminder to diversify their portfolios and seek alternative ways to grow their hard earned capital. While there are many different options for investment portfolios, one of the best choices for growth that isn’t tied to the stock market is: real estate. And, the Nashville area is one of the hottest rental markets around.
There are many options for investing in real estate..commercial properties, multi-family , residential. The upfront costs for owning commercial and multifamily real estate can be high. They also are limited when it comes to diversity. Even though multifamily developments have multiple tenants to collect rent from, it is still limiting in the sense that all the tenants are in the same place and downturns in the real estate market in that area could have adverse affects on your investment. Commercial property is a popular choice because of the high potential returns, but it also represents one of the largest downsides associated with this type of real estate.
The current market reflects high demand for quality rental options and the growth of equity in properties for owners. These are just two reasons why real estate is a viable investment option. When compared with multifamily and commercial real estate, single family rentals offer the most flexibility. Prices for single family rentals are considerably lower, and investors can scale their investments to purchase one or an entire portfolio of properties.
Whether you’re looking to invest a little or a lot, single family properties can be a great option. Several of my clients have purchased a rental properties to provide for college funding. Others are using their rental properties for their retirement income. If you’re planning to invest large amounts of capital in real estate, single family rentals can help you take advantage of many of the same great benefits found with multifamily properties. When you purchase several single family residences in different markets, you can receive more rents and own homes that are appreciating in most cases….you’re also reducing risk and adding the diversity that comes from investing in multiple markets. And managing a single family rental is typically less work than multifamily or commercial real estate because tenants are usually responsible for maintaining their lawns, utilities and other minor maintenance items.
What if you need to sell your investment property? Single family rentals are much easier to sell, especially if you’ve done your homework and your properties are in markets that will be appealing to both investors as well as individuals and families. One of the biggest challenges most investors will face is knowing which markets will provide the best return on your investment…both in rental returns and appreciation. That’s where a real estate agent comes in….an agent who is experienced in evaluating investment properties and market areas and will be your trusted advisor to help you to determine which properties will best help you reach your goals. So jump in!….the water’s great….and Let me know how I can help you!