In the world of real estate investing single family homes have been called many things and have lead many a meager investor down the road to a successful career. The single family home is affordable, available, plentiful and fortunately just out of reach for quite a few people, which is where the investor fits in.
Single family homes in a reasonable price range with 3 to 4 bedrooms and 2 or so baths are ideal. It is wise to stay away from extravagance in this area or you may be left holding the keys to a monster during a down time.
The beauty to simple homes is that during good times the value climbs and you are able to sell at a good profit and during lean times there are many renters and you have a good steady flow of cash. Homes can be purchased in the traditional manner or in more creative real estate transactions. You an owner finance, lease to own, or go interest only. Whatever your flavor, learn the ropes and apply whatever strategy fits the particular market.
Many people start out by buying their first home and eventually renting that out when they upsize. This is a good strategy to get started but it also takes time to build a portfolio like this. It involves saving for a down payment, using traditional methods to purchase a house then living in the home long enough to satisfy the lender requirements for owner occupants. Viable yes, time consuming, yes.
Another option is to buy and flip properties. This will allow you to develop a nest egg that can be spent on bigger real estate parcels or can be used for more single family homes. You also have the option to rent or sell the rehabbed properties.
Buying foreclosures is a great way to get into the wholesaling market and can put you in the nice position of having the option to sell to investors or hold a property that you obtained at a very steep discount.
As you build your real estate portfolio be certain to stay abreast of changes in the market or in legal circles. Consult with experts on a regular basis and always keep your eye open for people that you can bring on to your team of trusted professionals.
Real estate investing is a high stakes game but the deck is stacked in your favor. With work and dedication it is inevitable that you will be successful.