Quick Wealth Network

Is investing in single-family homes as rentals a good way to build personal wealth and retirement monies?

Public Comments

1. I prefer business rentals in good locations. Not low end where you are dealing with scum bags. MANY renters only think they should live in a house but are unwilling to do the yard work to keep it nice. They usually want the room for their pets - which can really damage a property. However the cost to own a single family is much lower than buying a commercial rental and can be a way to get started.
2. Just some little advice: if you know very little about being a good landlord, this would be the perfect time to invest in learning how before you get into this type of business. I'm in the home investment sector and know people who are landlords who shouldn't be. They don't know how to keep the property up because it takes time and money, plus some overlook the type of communication with their tenants that is necessary to keep the rental property in good condition. Having open communication with your tenants helps alot. Making them know that you want to keep the home in suitable condition by setting guidelines. This way you will get yourself better tenants. I've got lots of clients with rental homes and can't say they are "retired" because of the rental property since they have to do lots of upkeep and continue to have to work.
3. The returns to commercial real estate ownership (I am not specifically familiar with residential) have been roughly comparable to that of the stack market over the last few decades. For a small investor, however, the lack of diversification may be a substantial disadvantage. A single troublesome tenant, or an unanticipated downturn in the local real estate market, could wreak havoc on one's investment portfolio. REITs are real estate holding firms which trade much like stocks - they may be more attractive for some.