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John Jung, Coldwell
Banker King Thompson, Dublin, Ohio
Direct Line: (614)526-5692 Home Office: (614)793-2967
Fax:(614)889-1901
Email: FreeReport@JohnJungJr.com
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Free
Real Estate Investing Reports
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What are the Drawbacks?
It
would not be fair to have a discussion about investing in single family homes without covering the negatives also. Every
investment has some drawbacks, no investment is “perfect”.
1.
MANAGEMENT- All real
estate requires management, either by you or a professional management
company. There are more headaches involved with real estate than
with simply putting your money in a money market account or mutual
funds. Single family homes are more difficult in some respects because
they are spread out. This makes it harder for showings and repairs
versus an apartment where all the units are in one location. There
is also more paperwork, because each house has its own mortgage,
property taxes, insurance, etc. Management takes some time, but
if you develop a system and stay on top of it, it is not all that
hard.
2.
VACANCY - All real estate can suffer from vacancy from time to time.
With a single family home, if it’s vacant, the
whole thing is vacant. With a 10 unit apartment, if you have
a vacancy you still have the other 9 units producing rental income.
By purchasing the right properties in the right areas and charging
fair rents, you can minimize the vacancy rate so it isn’t a big
problem.
3.
REPAIRS - Any real estate
is going to require repairs occasionally. Single family homes each
have their own furnaces, air conditioners, roofs, etc., unlike an
apartment building. Houses may therefore have more repairs, although
they will generally be less expensive repairs than for a larger
building. Apartments also require things like landscaping maintenance
and snow removal, things that a tenant often does in a single family
home. In addition, tenants in houses often perform a
lot of minor repairs themselves.
Where
Do I Find the Homes
Investing in Central Ohio? Let Me Help You Today!
John Jung, Coldwell Banker King
Thompson, Dublin, Ohio
Direct Line: (614) 526-5692 Home Office: (614) 793-2967
Fax:(614) 889-1901
Email:
investinfo@JohnJungJr.com
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