When you’re looking for or managing an investment property in South Jersey, Central Jersey, or the Jersey Shore, you have a lot of different options. There are some great older single-family homes in established neighborhoods. There are new construction condos, townhomes, and single-family homes in gated HOA communities. And, there are multi-family properties and small apartment buildings throughout the New Jersey rental market.
Each type of property requires its own management plan. With multi-family homes, for example, you may have to manage tenant disputes and conflicts between neighbors from time to time. With a single-family home in a community, there may be HOA regulations that are violated by your residents.
When you’re deciding where to invest, think about the benefits and challenges that come with each type of property.
Single-Family Properties Can Attract Long-Term Renters
A single-family home is always a great investment option because highly qualified tenants enjoy renting them. The tenants you attract with a well-maintained single-family home in a good location will want stability, and they’ll probably take care of the home just like it’s their own. You can expect them to stay in place for more than a year, and they’ll be attentive to maintenance issues.
Single-family homes also offer investors some great appreciation potential. These types of properties always increase in value. In New Jersey, you can usually count on the value of your property to grow, even in complex real estate markets.
One of the challenges to owning single-family homes is that your maintenance costs may be higher. Even if your property is new or in good shape, you’ll probably spend a little more keeping it in excellent condition. There may be landscaping costs that you cannot pass on to your tenants as well. There are also financing requirements that may be a bit stricter. A larger down payment is sometimes required.
Multi-Family Properties: Vacancy Protection
Multi-family properties are usually duplexes, triplexes, or even small apartment buildings. You have more than one tenant in place, which means you have more than one rental income stream. This is the major benefit of investing in multi-family properties; you will have rent coming in from various sources. So, if one unit is vacant, you aren’t losing a lot of money quickly. You still have rental payments coming in from the other units.
There’s also some savings involved when you consider the economy of scale when you’re handling maintenance and cleaning or landscaping and pest control. When you contract with a vendor to service four different HVAC units instead of just one, you’ll save some money on your per-unit maintenance cost.
At KEYVEST, we know there are some excellent advantages to investing in single-family and multi-family homes. You simply have to be prepared financially for the requirements of each.
We love working with new investors who are buying their first property and experienced investors who are building a portfolio. Contact us at KEYVEST for more advice and help with your New Jersey real estate investment goals.
