Three S's of SFR Investing Success

Why SFR's Make Great Investments For Every Level of Investor 

SIMPLICITY: Most of us understand very well how a Single Family House operates. We've got one roof, one furnace, perhaps a dozen windows, etc...so then, that same intrinsic knowledge pertaining to physical structure easily translates into our understanding while lessening our fear of the unknown. SFR's also use many of the same financing mechanisms we are all too familiar with, ie mortgages.

SUSTAINABILITY: Golfer's golf and markets cycle, that's just what they do. The housing market as an investment class is no different, and there's potential advantages waiting for you at any given stage or severity of any housing market cycle.

Perhaps you've purchased at the height of the market? That scenario very well may work to your advantage at tax time as you've effectively increased the amount of depreciation you can deduct for many years to come and thus potentially lowering your income tax basis. This scenario works well for those interested in transitioning their primary residence into a rental. Or perhaps you've purchased at the rock bottom portion of the housing market cycle. Congratulations, on the next up swing you'll be ready to take a financial windfall should you so desire.

The take away point here is that real estate is here to stay, it's sustainable over the long haul. And there is no "perfect time" to get in or out.

SCALABILITY: You can grow this thing! Just ask the Institutional guys...you know, the guys involved with making huge office building and industrial real estate deals.

At the level of sheer dollars worth, the single family housing market absolutely dwarfs the value of the entire commercial real estate market, and the big guys know it. That's why there out there buying single family homes in bulk, and collecting cash flow...and taking tax advantages...and deducting huge amounts of depreciation...and creating SFR investment funds...and assigning those portfolios to a competent property manager so they're not dealing with the day to day...are you getting the picture..??

THINK ABOUT IT: but not too long. The SFR investing market is structuring up and fast becoming one of the final frontiers for real estate investing. Don't wait too long to get involved.