Source: Realty Biz News —
Question from Sally in Southern Cal: Hi Brian. My husband and I want rental properties and have a little over $50,000 to get started. But the high cost means we will be risking almost everything we have in savings. I’ve done some reading and understand the general approach to use for getting into single-family rentals. However, this “new normal” coming out of the pandemic makes me think that some of the old advice might not be the best advice. What do you think has changed for small investors like us?
Answer: Hello Sally. First of all, the goal of single-family rentals is to build wealth and that is going to take time. You’re doing the right thing by asking questions and doing some planning before rushing into this. The good news is that as we inch closer to a post-pandemic world, the single-family rental market looks to be as strong as it has ever been over the past 20 years. So strong that institutional investors are getting into “built-to-rent” homes. Single-family rental investors are accounting for 15-20% of existing home sales and SFRs make up about 35% of the total housing market, including apartments. All indications are that this is a very good time to get in as mom and pop investors. Here are some important tips for the post-pandemic market as well as getting started in general.