Buying Build-to-Rent Homes for Investors

Dated: May 12 2022

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Buying Build-to-Rent Homes for Investors

In many cities across the United States, real estate investors are well aware that the demand for suitable rental properties is skyrocketing. The pace of increase in the build-to-rent housing was great, but it was much more outstanding because it only comprises residences constructed and rented by builders. It doesn't include the residences that were built by builders and then sold to investors as rental properties.

 


Financing is readily available

One of the best things about investing in real estate in the United States is that single-family rental property financing is available to everyone, not just the major players. Loans for build-to-rent houses are also being aggressively sought by smaller developers and real estate investors. As a consequence of the rising demand for single-family homes for rent, more rental communities are being built to accommodate the need. In many markets, a larger house with more bedrooms is frequently more expensive to rent than a smaller apartment with the same number of beds.

 


Changes in demographics

Millennials and Generation Z are two generations of people who have always lived in apartments. Tenants often seek a home to call their own as they get older and raise kids, frequently migrating to the suburbs or more inexpensive secondary markets. However, a combination of high student loan debt and high housing costs might make homeownership unaffordable for certain people. So, rather than trying to buy a house, renting a single-family home is a better option.

 


Strategies for exit

It's usually a good idea to have options, especially when you're attempting to sell a house. When a commercial real estate investor has a multi-tenant office building, for example, he or she may only sell it to another owner who owns a multi-tenant office property. The value of a business property diminishes when the need for office space declines, as it is today. To collect the ongoing cash flow, a single-family rental home can be retained for a long time.

Many analysts predict that many of the current trends, such as the demand for single-family rentals, will last for a long time. In the United States, the build-to-rent asset class is helping to generate new options for developers, builders, and investors to hold property in new rental communities.

Planning to buy, sell, or invest in any property type in Florida? Here at Tampa Bay Investments, we pride ourselves on giving our customers the best experience and we know how to navigate this challenging market. We also offer property management services and assistance to both buyers and sellers. I'm Kenrick Gleckler, your local Real Estate Expert, and here for anything you need so let's connect & I look forward to hearing from you.

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Kenrick Gleckler

I am a Tampa native, born and raised in the local area. Growing up, I was always involved with extracurricular activities through school and church. I graduated from Leto High School and Larson Educat....

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