Investment Opportunities That Fit Your Needs! Whether you’re a seasoned Investor, have your personal home you would like to rent out or currently seeking an investment property, Progressive Property Group will provide you with the correct tools to ensure your property works for you! 2021 has proven to be the best time to own an investment property as rental rates are up 21% in Colorado and continue to climb! With the home shortage across the board, Buyers who lost out in bidding wars have been subject to remaining in their current home or moving to a rental. This has created more prospects seeking a rental than inventory available.
Investing in a Single-Family Home
- Single-family home is defined as a free-standing residential home designed to be used as a single-dwelling unit, with one-owner, no shared walls, on its own land.
- Pros of owning a single-family home:
- Affordability for first time investors
- Less maintenance than large complexes
- Most desirable rental for renters as they do not have a shared living space and have a separate yard
- Lowest vacancy rate compared to other investments
- Appeals to a larger target audience as CO is known for it’s outdoors and pets
- Tax benefits
- Easier financing for Buyers
- Do not have as high of a cash flow as a multi-family complex that houses several renters
Investing in a Multi-Family Complex
- A Multi-family complex is defined by the number of residents. They can be duplexes, apartments, condos, fourplexes, townhomes, etc. They are homes with shared walls and contain a series of residents.
- Pros & cons of owning a multi-family home:
- Multi-family homes have a higher cash flow than single family as you have several renters in one building, separated by shared walls.
- Tax breaks when selling and investing into a higher-class multi-family complex (referred to as a 1031 exchange)
- Tend to be more affordable for renters
- Higher in maintenance depending on age
- Longer vacancy rates as single-family homes are sought out first, but easier to qualify renters
- Most Investors start out with purchasing a single-family home and collecting passive income for a few years. Then, use a 1031 exchange option to avoid property taxes when they sell and invest the proceeds into a multi-family home where they can double income rapidly.
Our experienced licensed Agents at PPG can help/educate investors on the best way to get started on investing or to expand their current portfolio. Contact us to learn about what we can do for you.
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