When it comes to making big financial decisions, you have to keep in mind that each decision can yield varying outcomes and consequences. To prevent these undesirable occurrences from happening, you must take careful consideration of your choices.
As such, this article shall discuss the possible struggles that you may encounter when buying a single-family home investment. Acknowledging these possibilities beforehand can help you prepare in making long-term investment strategies.
#1 Vacancies Cause Decrease in Return of Investment
When a lease agreement expires, single-family homes become vacant. These single-family homes are unlike multi-family properties that produce more than just one source of income. Finding a new tenant can cost you time and money.
#2 Homeowner Association Fees
Property owners in some upper-class neighborhoods with Homeowner Associations (HOA) are required to pay a monthly payment of fees. Funding for these fees adds up to the expense of owning a property.
#3 Decreased Land Areas
Some families prefer renting homes with more land, and seeing homes with smaller lots can become quite discouraging for them. On average, single-family properties tend to have land areas of less than ¼ acre.
#4 Higher Initial Sale Price
In general, single-family homes hold resale value regardless of the property’s age. As opposed to those that still need repair work during purchase, those renovated properties tend to have higher sale prices.
Take note of these possible struggles when deciding on buying a single-family home investment property. If you are interested in doing so, our team at Virtuoso Realty Group will gladly help you through your business decisions. Let our real estate agents help you out today!
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