Get Rich Education 140: Advantages Of Single-Family Income Property with David Campbell
#140: Keith’s new book is now out in paperback form at: www.GetRichEducation.com/Book.
Direct investment in single family income properties has strong demand from both investors and renters.
Single-family home (SFH) income property advantages include: they trade independent of market cap rates, stronger appreciation than apartments, inflation protection, amortization, tax depreciation, lower cost, easier financing, more understandable, no shared walls, divisibility, less tenant turnover, and better locations than apartments.
Today’s guest, HassleFreeCashFlowInvesting.com’s David Campbell helps Keith break down single-family investing advantages.
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Listen to this week’s show and learn:
01:15 Ken McElroy in 2017: “It’s a terrible time to buy multifamily in most metros.”
06:23 SFHs trade independent of cap rates.
09:57 Appreciation vs. Inflation.
11:03 SFHs are approachable because they’re lower cost and financing can be easier.
14:52 No shared walls: pests, fires, noise.
15:48 Arbitrage.
18:00 Keep a low equity position for asset protection.
20:17 Divisibility.
20:53 The fallacy of “buying cash flow”.
25:08 Prepaying the mortgage is a huge mistake.
27:55 SFH: no or low utility payments.
29:00 Neighborhood quality.
32:00 Cash flow.
33:51 Income tax-free states.
34:57 Tenant psychology in SFHs. It “feels like their own”. Exit strategy.
36:50 GREturnkey.com has many of the best income property SFHs.
38:25 Ask: “Mr. Manager, what would like to manage?”
40:40 SFHs have less tenant turnover than apartments.
43:10 SFHs is where you typically start.
45:46 “Leaving a trail behind” with 3.5% down payment FHA loans.
48:30 David’s free e-book at HassleFreeCashFlowInvesting.com.
Resources Mentioned:
HassleFreeCashFlowInvesting.com