A single family home is one of the most popular investment property styles for a variety of investors. This article describes this real estate type, its benefits, and why a landlord would sell their property.
Contents
What is a Single Family Home?
A single family home is a residential structure that sits on its own lot and is for one family. It has one kitchen, unshared walls and unshared utilities. According to the U.S. Census Bureau, this real estate types includes fully detached, semidetached (semiattached, side-by-side), row houses, and townhouses. In regards to attached units, each must be separated from the adjacent unit by a ground-to-roof wall in order to be classified as a single family structure. The units must not share utilities or heating/air-conditioning systems.
What is the difference between a single family home and a multifamily home?
A single family home has one owner who owns the entire structure and typically lives in the house or rents it out to one family. An apartment is a unit within a multi family building with many units (sometimes hundreds) rented out to tenants. All units are owned by a group of investors, a corporation, or a single person. A single family home could never have multiple units because they would share interior walls and potentially have their own utilities, and common areas such as kitchens and bathrooms.
Benefits of Owning a Single Family Home?
There are many tax benefits involved with owning a single family home as an investment property. When you own this type of real estate as an investment, you can deduct many expenses, including tenant screenings, repairs, marketing and advertising, insurance, and any maintenance fees. Single family home owners can also benefit from depreciation on their property, which will give you a tax break on your property’s rental income.
Reasons Why A Landlord Would Sell Their Single Family Home?
Bad Tenants
Bad tenants can cause landlords many headaches and thousands of dollars in legal fees and repairs.
Debt
A growing amount of bills, interest, property taxes, foreclosure, etc. can be overwhelming for many property owners. When you’re facing high debt, the best solution is to lower or wipe out your debt by selling your property fast.
Repairs
Foundation issues, electrical, HVAC, plumbing, flooring, appliances, and more. Repairs can easily wipe out your investment profitability.
Inheritance
If you inherited a property, you may not have the interest or experience in managing a property, and it would be better to sell.
Tired of Being a Landlord
Many landlords want to retire and focus on other interests and hobbies without having to worry about repairs, bills, and tenants.
Tax Benefits
There are many tax benefits associated with renting out a single family home. You can claim depreciation as soon as your home is available for rent, even if you don’t have any tenants living in there yet. You can also deduct repairs, maintenance, equipment, legal and professional fees, utilities, office space, travel costs, mortgage loan interest, insurance premiums, and property taxes.
The Types of Houses We Buy
We typically look at houses at least 15 years old and in need of renovations, repairs, and overall TLC! It doesn’t matter the situation, or the condition your property is in, contact us for a free cash offer!
Where Do You Buy Houses?
We buy single family homes all throughout Texas! Simply fill out the form below to get started.
