The Columbus real estate market offers investors several types of properties, such as multi-family units, commercial properties, and short-term rentals. However, single-family homes are one of the best assets for investment. Columbus is viewed as a desirable residential location by families for its affordable cost of living, combined with lovely weather suitable for outdoor adventures year round.
At Bickerstaff Parham Property Management, we have managed single-family, multi-family, and commercial properties in Columbus for over 20 years. Here’s why we recommend investors choose a single-family property over other properties in Columbus.
1. High Demand and Higher Liquidity
There is a high demand for single-family homes in Columbus, especially amongst families, due to easily available amenities like grocery stores, coffee houses, restaurants, gyms, gas stations, pharmacies, and clubhouses. There are some great schools in the city that have escalated the demand and the rental prices by approximately 9.3% year over year. Unlike multifamily properties, it is easy to keep these occupied, as you have to find only one tenant and focus on retaining them for a longer period.
2. Low Management Costs of Columbus Single-family Homes
Property management charges are typically lower for single-family units in Columbus. Plus, the tenants living in the single-units are generally families or couples who are likely to use the property responsibly and abide by the terms on the lease. This leads to fewer maintenance issues and minimizes the overall operational costs for the owner.
3. Single Family Homes Are Easier to Finance
Single-family homes are less expensive, and the down payment is also lower than the other properties. Lenders tend to follow a more stringent process for financing a multi-family or a commercial property since the amount is large.
On the other hand, banks are aware of the demand and consistency of cash flow for single-family units in Columbus and are, therefore, willing to approve loans to such investors at a relatively lower interest rate. The federal government also supports residential property investments and offers several loan opportunities for first-time investors.
4. Building A Real Estate Portfolio Is Easier
It is easier to grow your real estate portfolio by investing in single-family homes as these are considerably budget-friendly. You can invest in multiple single-family units in different localities instead of investing in a single multi-family property or a complex in a specific location. Besides, you can use the ‘bite-size’ investment strategy, gain tax benefits from depreciation, and plan your single-family investments better.
5. Single-Family Homes Survive the Columbus Market Fluctuations
People prefer living in Georgia and Alabama for its history, art, outdoors, attractions, diversity in experiences, and affordable cost of living. The demand for residential properties usually exceeds the demand for commercial properties. Single-family houses tend to hold their value even when the market is unsteady. Case in point, the residential rental market in Georgia and Alabama was relatively stable even during the last housing market recession.
Real estate investment is a huge step. It is important to choose a property based on your current financial capabilities, your investment goals, and your risk appetite. We suggest you take guidance from a professional property management company, Like Bickerstaff Parham Property Management, before making a final decision. We know the local market in Columbus inside out and can tell you which property can help you earn maximum returns on investment.
For more information on the single-unit homes in Columbus, talk to one of our expert agents today.