So you’re thinking about investing in San Diego Rental Properties thanks to the explosive growth of the Real Estate market and demand for rental properties.
Before moving forward on adding rental properties in San Diego or Las Vegas to your investment portfolio you must decide if buying single family or multi-family rentals are the best options for your Real Estate investment.
In this post we will break down the benefits of both options so you can be a more knowledgeable investor when you are ready to make a decision.
Why Buy A Single Family Home?
Over the last three years almost everyone from Warren Buffett to the traditional Real Estate investor has been buying single family homes.
If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.
Source – cnbc.com
Some reasons to invest in single family homes include:
- You have more leverage: When you buy a single family home in San Diego with a 20% down payment you will be able to immediately see a great return on your investment thanks to the cash flow which will come from that property.
- Big Growth – Home prices are still affordable right now compared to historical values and you will be able to buy a home for an affordable price then see a great return on your investment over time thanks to equity and appreciation.
- Huge Financial Benefits – Buying a single family home also means you will be able to benefit from the tax deductions which come from owning the property.
Should You Buy A Multi-Family Property?
There are many benefits which come with buying multi-unit properties including the following:
- The price per unit is lower than most single family homes.
- Multi-unit properties offer greater income diversification than single family homes.
- Processing the paperwork with a multi-unit property is easier than it would be if you were to invest in multiple single family homes.
- Owning a multi-family property also means you will have lower overhead costs compared to owning multiple single family properties.
About Goldenwest Management
At GoldenWest Management, Inc. we pride ourselves in affordable Property Management in San Diego, Phoenix and Las Vegas. We offer a full range of property management and investment services.
Get property management for your San Diego Rental Properties by calling us today at (858) 792-3442 or contact us online.