At Blue Frog Property Management, we work with both single-family homes and multi-family units. We know that investors have different goals and plans when they acquire a rental property, and sometimes it makes sense to buy a single-family home while other times a multi-family unit or an entire building will be a better solution.
For a diverse and profitable real estate portfolio, we recommend buying both types of investment property. If you’re wondering what type of rental home to buy right now, we have some things for you to think about.
Green Bay Single-Family Rental Properties and Tenant Retention
A single-family home is always a great investment option because they are always in demand among highly qualified tenants.
An additional benefit to this type of investment is that you’re likely to have positive tenant retention. The residents you attract with a well-maintained single-family home in a good location will want stability, and they are likely to take care of the home just like it’s their own. This will save you money on turnover costs as well as maintenance. You likely won’t be bothered to make extremely minute repairs and cosmetic changes. The tenants will take care of whatever they can on their own.
Single-family homes also offer investors some great appreciation potential. These types of properties always increase in value. In Green Bay, you can expect to cash flow your single-family home and build some equity quickly. The cost of these homes is not as high as in some other markets in the northeast, and you’ll collect a pretty consistent and reliable rent.
One of the challenges to owning single-family homes is that your maintenance costs may be higher. Even if your property is new or in good shape and your tenants are good about changing air filters and maintaining the yard, you’ll probably spend a little more keeping it in excellent condition. There may be HOA costs that you cannot pass on to your tenants. Unless you’re paying in cash, you’ll probably need at least 20 percent down when you’re looking for a mortgage, especially if you’re financing your investment through a traditional bank.
Green Bay Multi-Family Properties Avoid Vacancy Risk
Multi-family properties are often duplexes, triplexes, or even small apartment buildings. These can be excellent opportunities for new investors who worry about vacancy. When you invest in a multi-family property, you’ll have more than one tenant in place, which means you have more than one rental income stream. This is the major benefit of investing in multi-family properties; you will have rent coming in from various sources. So, if one unit is vacant, you aren’t losing a lot of money quickly.
You still have rental payments coming in from the other units.
Economy of scale is another benefit to renting out a multi-family unit. When you need maintenance or landscaping services, you can contract with a vendor who is likely to provide a discount because of the volume of work you need. You’ll save time and money maintaining a single building with two or three units.
Tenants are more than neighbors with multi-family units; they’re often sharing walls and communal space. This means conflicts and disputes can arise between your tenants more frequently. There might be complaints about noise or parking or trash or pets. This can take some extra time and lead to frustration for you as the landlord.
When you’re looking for a great Green Bay investment property, contact a professional Green Bay property management team. We’d be happy to help you. Let us know what you’re looking for and how we can help you navigate the process. Contact us at Blue Frog Property Management.