Three Basic Single-Family Rental Investment Strategies

Before investing in a single-family rental property, you should understand what you want out of the investment to ensure that you choose a property that will meet your needs.

Strategies vary depending on age, employment, income and capital. Roofstock can help you find the right strategy. Here are some strategies you might consider:

1. Income

If you are looking to invest in a property to
 benefit from the rental income, you will want to look at properties with a high net yield. This figure can be helpful because it can give you a sense of what the return on your investment might look like before purchasing a property.

This figure can be helpful because it can give you a sense of what the return on your single-family rental investment might look like before purchasing a property.

2. Long-term Investment

If you have started saving for retirement already, you might want to consider using some of your savings to purchase a property using funds from a self-directed IRA account. An IRA lets you hold property and other investments tax deferred until you are ready to use the savings. If you hold property with your IRA funds, the rental income and appreciation will accumulate tax-deferred.

3. Total return

If you are looking to hold on to a property long-term as it appreciates, you will want to look at the projected appreciation rate. Although this is not a definitive number, it will give you an estimate of what the property could be worth in a few years. Some other factors to also consider include: the age of the property, projected repairs, quality of local schools and the projected job growth within the market.

>>Related: How to pick the right real estate income property

How Roofstock can help you with your strategic investment plan

Roofstock is designed to help you find properties that are in line with your targeted single-family rental investment strategies by offering a variety of tools and resources within our platform.

If you need help formulating a strategic plan, we suggest talking to one of our advisors and also taking advantage of the many investment tools offered by our site:

  • Search Filters: When browsing our properties, our search filters enables you to look for properties that meet your single-family rental investment criteria, whether that is high yield, appreciation or a specific market.
  • Advisory Services: Whether you’re interested in purchasing a single property or a whole portfolio, our team of advisors is ready to help guide you through the process of selecting a property that fulfills your targeted investment strategy.

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Andrew Bilen


Andrew Bilen

Andrew is a Strategic Initiative Analyst at Roofstock.

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