Realty411 Magazine Featuring Tom Wilson | Page 17

OPTIMAL REAL ESTATE INVESTMENT A Methodology for the Busy Professional by Adiel Gorel A s a busy professional, it is likely that your income is sufficient to qualify for loans on investment properties – especially Single Family Homes – in most of the U.S. markets. A high percentage of busy pro- fessionals also have credit scores which bode well for getting good financing. I maintain that the ideal prop- erty for real estate investment for the busy professional is the Single Family Home (SFH). SFHs are almost a perfect property for the individual investor who also has a regular job or business. Realty411Guide.com SFHs are still the “American Dream” for most people. They are also a relatively attainable “dream” in many large metropolitan areas in the US where prices are quite affordable, even in 2016. SFHs are essentially the most “liq- uid” real estate since when it’s time to sell, your potential buyer pool is the largest – effectively all home buyers in the marketplace. SFHs are the real estate investment on which you can get the most pow- erful loan in the real estate universe – the magical fixed-rate, 30-year loan. Technically this loan is available on 1 to 4 residential units so duplexes, triplexes and four-plexes also qualify. PAGE 17 • 2016 However SFHs are usually superior to the 2-4 unit properties. In good areas you will usually find only SFHs, while you may have to travel to another part of town to see the “plexes” and they will usually be surrounded by many other “plexes”. The “plexes” are more likely to present management challeng- es, have more short-term tenants (statistically) and to top it off, may not necessarily provide as good an appreciation over the long term. One exception is new duplexes in white-collar areas, but overall the SFHs are superior. I have been buying homes for well over 30 years, and helped > reWEALTHmag.com