That’s among the findings of a survey from the Real Property Management franchise which reveals that the difference between the perception of the ownership of the rental market and the reality. The study considered single-family rentals, the second largest sector behind apartments.
“The single-family residential investment market has long been misunderstood and dismissed as only an option for those wealthy enough to use real estate investing as a business,” said Bob Pifke, CMO of Property Management Business Solutions, LLC, the franchisor of Real Property Management.
The survey found that two thirds of rental property investments are made in the investor’s local area, using friends, family and real estate professionals for advice. Investors in rental homes from outside local areas has a limited impact on markets.
Most of those buying investment property of adding to the rental market with just a third identified as ‘flippers’. Two thirds of properties are renovated after purchase.
Investors generally buy homes at below the market price with just a third willing to pay more than $275,000.
“The results of this study have painted a clear picture that single-family residential investors are becoming more and more serious, and that rental properties are being recognized as a mainstream asset for investors building a portfolio for retirement,” added Pifke.
More market update:
The majority of America’s 44 million rental households are living in homes owned by small entrepreneurs who are likely to be local residents.