3 Reasons Landlords Should Invest in Single-Family Homes Today
Housing prices for single-family homes are up, well more than up -- they skyrocketed in 2021. Nationally, home prices have risen 18% from November 2020 to November 2021, according to CoreLogic. And in Phoenix, they've risen an incredible 30.5%. Even still, many investors, including me, believe buying single-family homes remains a solid investing strategy for 2022. Let me explain.
If you have any hesitation about whether single-family homes are a good investment, just look at what other investors are doing. The big guys -- investors such as Invitation Homes, Fundrise, Tricon Residential, and American Homes 4 Rent-- are focusing on single-family homes.
It's almost as if they just recently figured out what we mom-and-pop landlords have known for a long time: It's very doable to get a 10% ROI on rental property. Armed with that nugget, real estate investors (big and small) are responsible for buying 18% of homes in the third quarter of 2021, up from 11% a year earlier, even with the inflated home prices. Single-family homes make up almost three-quarters of these purchases. Condos, townhouses, and multifamily represent the rest.
Source Fool.com
