A single-family home is a desirable property type for families, young professionals, and investors. Since a large buyer and renter pool prefers this type of home, single-family properties offer tremendous financial opportunities for investors.
Single-family properties vs. multi-unit properties
While all residential real estate properties offer a place to live/stay, investors know the drastic differences between single-family homes and multifamily properties.
The distinction between residential properties can impact an investment opportunity, so it’s essential to understand the advantages and disadvantages of each property type.
A single-family property is a free-standing home on a plot of land. Unlike a townhouse or duplex, a single-family property does not share walls with another unit.
A multi-unit property is a building that accommodates more than one family living separately. A multi-unit property includes apartments, condos, townhouses, and duplexes.
Pros and cons
Single-family investment properties
There are several benefits to owning a single-family investment property. Single-family homes attract long-term renters, which means more financial stability for the owner. Additionally, single-family properties appreciate and are typically the easiest to sell.
While single-family homes do not bring in the same cash flow as multi-unit properties, they are generally lower maintenance, and the owner can be more selective of their renters. As a result, many rental owners have only one single-family rental property and are just beginning in real estate investing.
However, unless an investor purchases several homes, single-family properties are challenging to scale.
Multi-unit investment properties
Multi-unit investment properties allow investors to scale quickly. Multi-family complexes offer significant cash flow when tenants occupy all of the units. They also can diversity real estate portfolios for an experienced investor.
However, investors who own entire complexes face several challenges.
Multi-unit properties typically require more maintenance and overall upkeep compared to single-family homes. Several tenants also rely on the property manager instead of just one tenant (or family).
Additionally, the rental market can severely fluctuate. For example, many landlords and property owners were adversely affected during the COVID-19 pandemic and eviction moratorium.
Marketing to real estate investors
When targeting real estate investors as part of your business strategy, it’s essential to know the two main types of investors and how to market to them.
Fix-and-flip investor
This buyer is interested in short-term gains. As a result, they want to find an outdated single-family property in a highly desirable area. The goal of a fix-and-flip investor is simple. They want to spend only the necessary money to flip the property before selling it for much more.
You can appeal to fix-and-flip investors by showing the potential of your listing offers. A floor plan and professional real estate images help draw in the right investors.
Additionally, write your listing description with fix-and-flip investors in mind. Also, include terms like a fixer-upper, investment property, and significant value. Remember to highlight the features that add value, like hardwood floors, large windows, or granite countertops.
Buy-and-hold investor
A buy-and-hold investor understands the value of owning real estate. Their strategy is the opposite of fix-and-flip investors. The buy-and-hold investor plans to watch their properties appreciate over time. When marketing to this type of buyer, present the listing as a long-term investment opportunity.
Tips for marketing to a real estate investor
When marketing to people interested in real estate investing, you can highlight why your listing is ideal as a rental property.
Illustrate the amount of operating income the investor can expect to receive by investing in single-family rental homes or apartment buildings.
Social media posts
An excellent way to target real estate investors is through social media. Posting on Facebook, Instagram, Twitter, LinkedIn, and other platforms will reach a broad audience. You can use these channels to connect directly with prospective buyers.
SEO keywords in blog content
Use keywords to optimize blog posts about real estate investing. If you’re posting about investments in a specific neighborhood, include the name of the community. This will make your posts more relevant to search engines and increase traffic.
You can also write more general blog posts about the real estate industry, including trends in local housing markets and the benefits of rental property investing. A few sample blog topics to attract real estate investor leads include:
- How to get a mortgage loan for a real estate investment
- The most significant benefits of operating apartment complexes
- Expected closing costs for commercial property purchases
- Median household income in the local real estate markets
- How real estate can diversify an investment portfolio
- Top 15 things you can do with extra rental income
- The stock market versus real estate investing
Professional real estate photography
Use visuals to engage your audience. Always hire a professional real estate photographer for your listing images and consider a virtual tour to attract out-of-state investors.
Single-listing websites
Create a unique single-listing website for each listing. Make sure the pages are optimized for mobile devices. Use text and graphics to tell the story of your home. Add links to additional information, including videos, maps, and photos.
Include contact information at the top of every page. An email address, phone number, and website link are all important ways to communicate with prospects.
Local news ads
Don’t forget to promote your listings on local news stations. Local radio and television stations often run stories about new housing developments in local real estate markets. Find out when they air these segments and send them a press release announcing your upcoming listings.
Yes, single-family homes are an excellent real estate investment.
Single-family homes attract long-term renters, which means more financial stability for the owner. Additionally, single-family properties appreciate and are typically the easiest to sell.
The two main types of real estate investors are buy-and-hold and fix-and-flip investors. The involved strategies are nearly the opposite.
When marketing to people interested in real estate investing, you can highlight the reasons your listing is ideal as a rental property.
Additionally, you can use SEO, social media posts, professional photography, and single-listing websites to promote your listings to real estate investors.
