Single-Family Residential (SFR)

What is a single-family residential property?

Single family residential properties are often referred to as an SFR property. Often the homes we live in.

Why are single family residential investment properties so profitable?

Single family residential portfolios are notably profitable with robust profit margins per unit. Why? Tenants pay for utilities and high demand in the space leads to property appreciation. High property appreciation is currently being noticed across the nation as property values are at all-time highs. The advantage for investors in the single-family residential space is that it’s more customary to pass utility expenses onto the tenant. This allows the landlord to increase his profit margins per unit and his portfolio’s return on investment. Investors have become more aware of the SFR space which has pushed home prices and homes sales to historic highs.

Single-family residential properties are affordable and accessible

The single-family residential property type is the most affordable real estate investment vehicle and significantly more accessible to the average investor compared to multifamily investment properties. Why? The average investor can easily find loans and funding for single-family residential acquisitions. Investors can find a surplus of opportunities for as low as $50,000 in numerous markets in the United States and start cash flowing as soon as the following month.

What are the benefits of being an investor in the SFR space?

Investors benefit from low barriers to entry: low down payments, access to numerous financing opportunities and affordable investment opportunities. Investors currently in the space benefit from a monthly cash flow, robust profit margins, low tenant turnover, low risk, property appreciation, opportunities for diversification in different markets and the feasibility of selling and managing.
Investors also benefit from the opportunity to build an SFR rental property portfolio that they can place under one blanket loan. Portfolios allow investors to qualify for lines of credit and portfolio loans to acquire more properties or to refinance.

Where can investors find these investment opportunities?

Investors can find single family residential properties through numerous sources such as:

  • Zillow
  • Redfin
  • MLS
  • Opendoor
  • Wholesalers

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