Want to Invest in the Housing Market? Try This REIT.
Owning a rental property isn't as easy as it may sound, even if you hire a property manager. But that's not the only way to invest in the housing market.
Another option to consider is buying shares in AMH (NYSE: AMH), formerly known as American Homes 4 Rent. This real estate investment trust (REIT) owns a large and diversified portfolio of single-family homes. It's not exactly like owning your own rental property, but it gets you many of the most important benefits while saving you hassle and risk. Here are some key facts to consider.
Most small real estate investors will only own a few properties, perhaps only one, in addition to their primary residence. That means a vacancy at a single property can have a huge impact on your cash flow. Similarly, an unexpected cost at a property (like replacing a broken furnace) will be a heavy burden. AMH owns more than 59,000 single-family homes. No single property will have a discernible impact on its overall results or the income you receive from the REIT's dividends.
Source Fool.com
