Single unit houses continued

Buying a single unit rental house can be a great way for an inexperienced aspiring real estate investor to “get their feet wet” in the business.

• A single unit house or condominium is one of the smallest parcels of rental real estate that someone can buy. This small sized transaction will require the least amount of capital as compared to other real estate purchases.
• The single unit house marketplace has a large inventory and properties are constantly changing hands. In 2012 a large selection of properties is available on the market. Currently the problem with home foreclosures and oversupply is a national problem. This problem offers opportunities for the knowledgeable investor as a great deal on single unit house can be found.
• A constant demand exists for the rental or purchase of single unit houses but the demand will vary by market. The continuously growing US population is a long term driver of demand for housing nationally.
• Favorable financing is available to buyers of single unit houses. The United States government underwrites most of the mortgage market for single unit houses through the agencies FHA, Fannie Mae and Freddie Mac. Other government programs exist to add financing alternatives to this market.
• With a single unit property you only have one tenant to deal with and only one unit to renovate and manage in the future making the whole process easier (but not necessarily easy).
• Government regulations impact single unit houses to a lesser degree as compared to multifamily or retail properties.

The skill set and procedures that are required to purchase a single unit property are very similar to the skills and procedures required to purchase  larger income producing properties.

Going through the process of finding, analyzing, investigating, purchasing, managing and selling a single unit property is an excellent exercise and experience in the real estate business.

Once you go through this experience you will have a good idea whether or not you really want to continue in the business.