Real Estate Investing in Middle Tennessee
Last week’s blog showed some of the benefits of investing in multi-family rental property, which is currently outpacing single-family construction permits in Rutherford County (see local newspaper story Here). But if you’re looking at real estate investing and want to see a greater return on your investment in the long-run, a single-family residence might still be the best option.
Let’s take a look at five reasons a single-family residence might still be your best real estate investment choice:
Typically, a Single-Family Residence is in a nicer locale than multi-family. Consider a quiet neighborhood and its typical location compared to where apartments are located. There are often greater congestion and traffic issues in locations with multi-family buildings. Good property locations can make a unit easier to rent. After all, location, location, location still matters in real estate.
Most property management companies will tell you that tenants in Single-Family residences are usually more careful with their property than multi-family tenants. That’s usually because they’re looking for a home rather than just a place to live. Tenants that choose a stand-alone home often have more long-term residential goals.
Murfreesboro’s property management team Real Property Management Rental Solutions says that tenant turnover is the single largest cost for real estate investors. That’s why Single-Family Residences are often a better play. Longer-renting tenants means you won’t have to constantly advertise, show, and re-lease your property. This saves you both time and money.
The Murfreesboro, Smyrna, and LaVergne areas have a booming housing market. For Middle Tennessee property management, there is ample opportunity to get a good return on your investment. Single-Family Residence properties usually go up in value over time. So, the opportunity to make money just by owning a property can be significant.
Here is where we talk about long-term goals. With a single-family home, you likely have a goal to sell the house and pocket the investment once the property is paid off. Or you could go for a 1031 exchange. If you handle it correctly, you can have a big payday at the end of your investment. This can then fund a retirement or other investments.
So, which is right for you? That depends on your personal goals and situation. Rental property investing requires time and patience. With a good partner like RPM Rental Solutions, you can be successful. Give us a call to find out how we can help with all your residential property management needs! Owner Hugh Jones was born and raised in Murfreesboro and is a great resource for the property management industry in Middle Tennessee. 615-900-4067