Register for the 2018 Phoenix IMN SFR Portfolio Forum West. Hosted by IMN. Platinum Sponsor SVN | SFRhub Advisors.

Phoenix Arizona skyline panorama cityscape skyscrapers downtown, palm trees, night

Join SVN | SFRhub Advisors this December 3rd through the 5th as the primary sponsor for a sneak-peek into our exclusive online marketplace for Single-Family-Rental (SFR) and Build-For-Rent (BFR) investment portfolio sellers and buyers.


Network with over 300 REITs, funds, fix & flippers, buy & hold investors, NPL, ABS & bond buyers, who are already registered to attend. We hope to see you at the 7th Annual Single Family Rental Investment Forum (West).

Register here!

Jeff has been in the forefront of the SFR Portfolio segment offering value and professional service to investors and sellers of single-family rental portfolio assets across the nation.

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Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
Phone: 602-441-5354
2400 E. Arizona Biltmore Circle
Suite 1400
Phoenix, AZ 85016

America’s Youngest Adults Have the Most Confidence in Real Estate by Zillow. SVN | SFRhub Advisors

With the fear of a financial crisis, like the one in 2008, no longer a constant, young Americans are now saying buying a home was an excellent investment. What do you think of this new change? Do you think it will last long? How do you think this will impact commercial real estate? Let us know below!

Blueprints_Couple_Millennials

As of Q3 2018, 29 percent of all Americans said buying a home was an “excellent” investment.

Among young adults aged 18-34, 33 percent said buying a home was an excellent investment, compared to 29 percent of prime working-age adults (35-54) and 27 percent of older adults aged 55-and-over.

There has been some speculation that young Americans, scarred by the 2008 financial crisis that marked their most-formative years, would be more skeptical of investments in real estate than their older peers. But survey data collected over the past two years as part of the Zillow Housing Aspirations Report (ZHAR) largely show the opposite – the nation’s youngest are also the most bullish on real estate.

Americans of all ages view their homes, and real estate more broadly, as good investments – particularly in comparison to stocks, bonds and businesses. But younger adults are even more optimistic about the investment potential of their homes and real estate than older adults.

As of Q3 2018, 29 percent of all Americans said buying a home was an “excellent” investment. Among young adults aged 18-34, 33 percent said it was an excellent investment, compared to 29 percent of prime working-age adults (35-54) and 27 percent of older adults aged 55-and-over. Similarly, 27 percent of young adults, 23 percent of prime working-age adults and 16 percent of older adults said that real estate in general (e.g., investment or commercial properties) is an “excellent” investment.

Over the past two years, the share of Americans who view buying a home as an “excellent” investment has been stable. But the share who view real estate overall as an “excellent” investment has been steadily on the rise, propelled upward largely by sentiment among younger adults. More than a quarter of young adults (27 percent) said they view real estate as an “excellent” investment, up from 22 percent in Q1 2017. Young-adult sentiment regarding other investment categories – including stocks, bonds and businesses – has also been on the rise.

Zillow

While older millennials did see the American economy implode during their formative years, they have also borne witness to a remarkable recovery in home values over the decade since. Separating older millennials[1] (those likely in the labor force at the time of the 2008 financial crisis) from younger millennials (those still in high school or college, or younger, in 2008), it is clear that much of the recent jump in optimism about real estate and other investments has been driven by the youngest adults. Though also up over the past two years, sentiment toward real estate investments has been somewhat more tempered among older millennials.

Continue Reading Here.

How I Picked My Investment Property: Sarah Park by RoofStock. SVN | SFRhub Advisors

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Thinking about investing in single-family rentals? Well, here are a few pointers outlined by Sarah Park on how she picked her investment property. Number five is incredibly true and a huge factor.

Originally posted by Roofstock

If there’s one truth we hold to be self-evident about real estate investing, it’s that it doesn’t happen in a vacuum. There’s a constellation of individuals just like you looking to build financial freedom through rental properties, and the majority are eager to swap insight and belong to a community of like-minded investors.

Check out this investor profile on Sarah Park, a former Senior Product Designer at Roofstock, for a look at how she picked her first investment property. Sarah is based in the San Francisco Bay Area and has purchased one investment property on Roofstock so far.

Property details

  • Address: 4317 Park Forest
  • Market: Memphis
  • Year built: 1975
  • Sale price: $95,000
  • Current rent: $1,100
  • Annual net cash flow: $2,862
  • Gross yield: 13.9%
  • Cash-on-cash return: 10.6%
  • Cap rate: 8.4%
  • Appreciation: 1.8%
  • Estimated total cash return in 5 years: $23,534
1. How did you go about your investment property search?

A lot of reading, late-night bonding with the internet, and coffee meetings with investors who already successfully invest in out-of-state rentals (because I definitely cannot afford Bay Area homes).

I like to learn from others’ mistakes and successes, so I read and listened to as many real estate investor tales as I could get my hands on (mainly from sources like BiggerPockets). It took me about six months of after-work researching and reading before I decided to buy my first rental. Books are my best friend. Here are some of my favorites:

“The Millionaire Next Door” by Thomas J. Stanley Ph.D.
“Set for Life: Dominate Life, Money, and the American Dream” by Scott Trench
“What Every Real Estate Investor Needs to Know About Cash Flow” by Frank Gallinelli
“The Book on Tax Strategies for the Savvy Real Estate Investor” by Amanda Han and Matthew MacFarland

2. Did you have a set of investing criteria? What elements were the most important to you?

I cared about cash flow, the market, current rent vs. property value (I used the “1% rule” as a quick gauge), and the estimated cost of repairs — both immediate and ones that would have to be addressed when the property turned (leased to new tenants).

This helped me understand how much cash I needed to have on hand immediately, as well as how much I would need for reserves to cover turn costs down the road. The great thing about Roofstock is that most properties have full inspection reports disclosing estimated repair costs next time the property turns, which is extremely handy.

3. Tell us about your property and how you ultimately chose it

I initially narrowed down my search based on markets: Jacksonville and Memphis. But in the end, my decision was ultimately driven by return metrics and less by location. The property I found had an 8%+ cap rate and first-year net cash flow of close to $3,000. I knew it would get taken off the market quickly, which motivated me to act fast and make an offer!

I also liked that the roof and HVAC system were in good condition with 5+ years remaining life. Those are big-ticket items and being able to view the inspection report on Roofstock gave me added peace of mind.

4. What do you like about the Memphis real estate market?

With single-family rental properties ranging from $80k-$150k, it was a market I could enter more comfortably as a new rental investor. Of all the Memphis investment properties I looked at, I liked the acquisition price-to-rent ratio and the potential returns, given the market rent.

5. What lessons have you learned along the way?

Taxes! I had the biggest tax return thanks to the all expenses and deductions I was able to claim. I’m sure I left more money on the table because of my inexperience, but I plan to educate myself more on taxes before next tax season. I also plan to work directly with a CPA next time I do my taxes. I never thought I’d find myself so excited to learn about taxes…

6. Any additional advice for first-time real estate investors or tips you’d like to share?

For first-time investors: Trust the experts and others who have more years of experience in a given market, rental investing, etc. than yourself. At the time, I had zero years of experience in analyzing a home’s quality, so I knew it was silly/useless of me to visit the property in person and attempt to inspect the home. I wouldn’t have known what to look for.

Just remember to pay attention to the numbers and reports created by experienced inspectors. And ask questions! I personally found people in the industry very open and willing to share their knowledge.

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Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
Phone: 602-441-5354
2400 E. Arizona Biltmore Circle
Suite 1400
Phoenix, AZ 85016

SFR Portfolio Marketplace by SVN | SFRhub Advisors

Here you’ll find exclusive single-family rental portfolios from the SVN network. Click on each link to learn more about the portfolio or contact us to learn more.

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9 HOME SFR INVESTMENT PORTFOLIO SILVER CITY NM

David Benzing- 9 SFR

  • 100% Occupancy
  • Limited Rental Housing Competition
  • Well Maintained Properties
  • Close Proximity Contributes to Easier Management
  • Motivated Seller Looking At All Offers
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5 HOME SFR INVESTMENT PORTFOLIO PORT VUE PA

5 House Portfolio Southeast Pittsburgh

  • 5 single-family houses
  • Tenants pay all utilities
  • 100% occupied
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12 UNIT/10 HOME SFR INVESTMENT PORTFOLIO MCKEES ROCKS PA

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  • Centralized location with easy access to all major highways
  • 15 miles from Robert Morris University or 10 miles Community College of Allegheny County (CCAC)
  • 15 miles from the Pittsburgh International Airport
  • Many shops located in nearby Robinson Twp or at the Ross Park Mall!
  • A healthy mixture of chain restaurants and Mom-and-Pop shops
  • Portfolio of all single-family homes
  • 100% occupancy with utilities paid by tenants

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21 MIXED UNIT INVESTMENT PORTFOLIO PITTSBURGH PA

21 Unit Portoflio Wilkinsburg

  • 17 residential units (nine in low-rise buildings, one quadplex, and two duplexes); and 4 store-front commercial units
  • Landlord pays water, and trash on Laketon and South; Tenants pay all other utilities

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16 MIXED UNIT INVESTMENT PORTFOLIO IN MONROEVILLE PA

16 MIXED UNIT INVESTMENT PORTFOLIO IN MONROEVILLE PA

  • Three 4-unit buildings, and one 3-unit building on same parcel, and one single family home
  • Comes with three acres of land where you can build 12 additional units or storage
  • Seven units have been remodeled this year (2018), and the final unit will be completed by Sep 2018
  • New sewer lines in 3578-3582 Pitcairn Road, and 2551 Tilbrook Road

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10 HOMES SFR INVESTMENT PORTFOLIO IN SPRINGFIELD MO

10 HOMES SFR INVESTMENT PORTFOLIO IN SPRINGFIELD MO

  • 10 Single Family homes.
  • 3 and 4 Bedrooms available in this package. All have 12 Month Leases and
    tenants pay all utilities.
  • Properties are high-quality construction with brick, stone, and vinyl siding
    exteriors.
  • Seller is original builder and homes average around 12 years in age.

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29 UNITS MIXED SFR/MULTI INVESTMENT PORTFOLIO IN PITTSBURGH PA

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  • Turnkey Cash-flowing Properties
  • Professional Property Management in Place
  • 10.65 CAP on actuals and asking price
  • 22% Cash-on-Cash return

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Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
Phone: 602-441-5354
2400 E. Arizona Biltmore Circle
Suite 1400
Phoenix, AZ 85016

5 Things to Know About Investing in Single-Family Rental Homes by MarketWatch featured by SVN | SFRhub Advisors

Are you a seasoned real estate investor? Or are you just starting or interested? Well, either way, below MarketWatch shows us five things we should know about investing in single-family rental homes. Number four will surprise you!

Originally posted by MarketWatch.

Single-family rental homes comprise more than one-third of all U.S. rental properties — about 16 million currently, with another 13 million new rental households expected to be formed by 2030. Since U.S. housing stock is not keeping up with this future demand, the sector should enjoy a significant tailwind given these favorable supply/demand trends.

Not surprisingly, demand for single-family rentals is at an all-time high and showing no signs of slowing.

There are many attractive characteristics to the single-family rental asset class. For starters, returns have historically moved independently from the stock market, meaning they lack correlation. In fact, data compiled by my company Roofstock show that single-family home prices and stock prices are almost perfectly uncorrelated. This means the ups and downs of the stock market have almost no direct impact on home prices, which tend to change in value more slowly and be influenced by numerous factors such as the strength of the local economy and amount of supply added.

If you’re a newcomer to single-family rental investing, one way to think about it is like an inflation-adjusting bond with an equity kicker. The rental income less operating expenses generates current distributions — like the coupon on a bond — and rents can be adjusted annually, providing inflation protection. Finally, the equity “kicker” comes in the form of building wealth as your tenant pays down your mortgage for you while the property can grow in value over time. It’s entirely possible to get a nice double-digit overall return on your equity over an extended holding period.

Purchasing and owning a single-family rental home is simpler than you might imagine. Here are five tips to get you started:

1. Know your investing criteria first

With any investment, be it stocks, bonds or real estate, you need to know what your objectives are. If you’re focused on safety and security, consider exploring low-risk investment homes that generate steady, reliable yield. An example of this may be a more expensive investment property in a good school district. You’re going to get a lower yield, but you may see better downside protection and less volatility. If you have a longer-term horizon or you’re seeking higher returns, you may want to take on a little more risk. Often, lower-priced homes will be riskier, but you may get higher yields and potentially higher long-term returns.

2. Don’t limit your investment property search to where you live

Consider this: If you lived in Atlanta, you wouldn’t buy Coca-Cola stock simply because its headquarters are local. The same principle applies to real estate investing. If your primary residence, income property, and job are all located in the same area, you have a lot of concentrated risks and are more vulnerable to the swings of the local economy. At Roofstock, an online marketplace for buying and selling leased single-family rental homes, we encourage people to spread risk by investing in markets outside of where they live. (Hiring a local property manager is key here.)

Diversification is just one reason to expand your investment property search. Another is access: If you live in an expensive urban or coastal area with relatively high home prices — the San Francisco Bay Area, for instance — finding an income property that’s cash-flow positive is going to be challenging, to say the least. You won’t be able to find a great income property for $100,000 in Seattle, Denver, or Oakland, Calif., but you can if you focus on the Midwest, South, and Southeast.

3. Separate investing from operations

One of the appeals of investing in single-family rental homes is you can hire strong local property management firms to handle day-to-day management tasks of rent collection, repairs and maintenance, and leasing. Over the past several years, property managers have adopted new technologies and business processes to manage homes more effectively for owners.

While some people do choose to self-manage, hiring a property manager can save you a lot of time and potentially money in the long run. While property management companies typically charge between 7% and 8% of the rent, they manage properties for a living and can work to ensure the property is leased, in good condition, and the tenants are happy. Additionally, using a local property manager effectively allows you to buy properties outside of where you live, as self-managing is difficult if the property is not nearby.

Continue reading here.

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Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
Phone: 602-441-5354
2400 E. Arizona Biltmore Circle
Suite 1400
Phoenix, AZ 85016

SVN | Live Every Monday by SVNic. featured by SVN | SFRhub Advisors

Join us every Monday
8:30AM PST | 11:30AM EST

Each week SVN presents a selection of our featured commercial real estate property listings on SVN | Live. Be the first to know when a new property becomes available in your area. Everyone is welcome to join this event.

This week, SVN | SFRhub Advisors featured two of our exclusive listings. Below, the listing is posted as well as a couple of talking points on the market.

10 Home SFR Investment Portfolio Sandy Springs GA 

10 Home SFR Investment Portfolio Sandy Springs GA-01

 

  • Solid Cap Rate of 5.66%.
  • 11 Home SFR Investment Portfolio Offers a Great Investment Opportunity
  • Stabilized Market Rents Average Above $2500
  • All New build homes just completed in September 2018
  • Pro-Business State With Rapid Job & Population Growth
  • All Homes Are 3 BD & 2.5 BA Floor Plans at 1,896/SF.
  • Easy Accessibility to Multiple Major Transportation Hubs
  • Atlanta Metro Population over 5.7 million With Low Costs of Living
  • Homes are near One of The World’s Busiest Airports, Hartsfield-Jackson Atlanta International Airport

 


Ainsdale Townhomes at The Commons 86 BFR Investment Portfolio Richmond Hill GA

Ainsdale Townhomews Richmond Hill GA-01

  • Stabilized Year 1 Gross Yield of 9.23%
  • Stabilized Year 1 Cap Rate of 6.93%
  • Strong 26.51% Stabilized Year 1 Leveraged IRR and a Stabilized Year 1 Leveraged Cash on Cash of 8.51%
  • 86 Townhome Build for Rent Investment Portfolio
  • Seller is an extremely qualified and respected regional developer and builder
  • The community is Ainsdale at the Commons in Richmond Hill, Georgia
  • Close to Savannah, Fort Stewart, Hunter Army Airfield, and the Savannah / Hilton
  • Head International Airport
  • Metro Savannah has a population of approximately 387,543 people and solid job growth projections
  • Recent Port expansion and dredging to accommodate larger vessels represents a significant investment in the area and job creation

 


 

10.22.18 SVN Live 2

10.22.18 SVN Live 1


 

Register here each week for exclusive insight on commercial real estate opportunities.

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Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
Phone: 602-441-5354
2400 E. Arizona Biltmore Circle
Suite 1400
Phoenix, AZ 85016

Single-Family Rentals Increased Faster than Apartments in 22 of 30 Big Cities, Led by Phoenix by RentCafe

A lot of people have been surprised by the alarming rate of apartment construction, but what is further surprising us, is the rate that single-family rental homes are being built. Here’s a quote from RentCafe, “For the better part of the decade ending in 2016, single-family homes for rent were the fastest growing type of rental in the U.S., outpacing the formidable apartment boom seen throughout the country.” And it shows no signs of slowing!

Originally posted by RentCafe.

The U.S. housing market has gone through nothing short of a transformation in the last decade. The number of people renting their abode has increased significantly, in some cities surpassing the number of homeowners. The housing market quickly responded to this shift by adding millions of rental units in just a few years, with many U.S. cities witnessing a frenzy of apartment construction.

The most interesting part of this transformation, however, was the fact that the rental market expanded even faster horizontally than it did vertically. For the better part of the decade ending in 2016, single-family homes for rent were the fastest growing type of rental in the U.S., outpacing the formidable apartment boom seen throughout the country.

According to U.S. Census estimates, the number of single-family rentals (SFR) in the U.S. grew by 31% in the ten year period immediately following the housing crisis (2007 to 2016), while multifamily rentals (MFR) grew by 14%. In net numbers, single-family rentals in the U.S. increased by 3.6 million units in ten years, more than rental apartments, which increased by 3.2 million units. As of 2016, the U.S. Census counted a total of over 15 million single-family homes for rent in the United States and a total of over 26 million apartments for rent.

RentCafe

The main trigger for this wave of single-family homes turning into rental homes was the housing crash of the late 2000’s. Many single-family homes with “underwater” mortgages were swept up by a few institutional investors during the crisis and turned into rentals. However, a much larger number of small investors became landlords during that period of time. According to a recent Urban Institute study, most single-family rentals in the U.S. are owned by individual investors. Of the 15+ million single-family rentals currently on the market, only 2% are owned by large investment firms, and about 45% belong to landlords who own just one unit.

Phoenix leads with the fastest growth and the largest gain in single-family rentals
Although they’re more common in suburban settings, single-family rentals have been incredibly prolific in most of the nation’s biggest urban centers. When we looked at increases in the number of renter-occupied households by type, we found that in 22 of the 30 largest U.S. cities single-family rentals expanded faster than apartments between 2007 and 2016.

With some of the largest numbers of foreclosures and sharpest drops in home values during the housing bust, the city of Phoenix tops the list of cities with the biggest percentage increase in single-family rentals. According to U.S. Census estimates, the number of houses for rent in Phoenix increased by a whopping 77% (from 56,900 in 2007 to 100,800 in 2016). Phoenix saw about 44,000 single-family homes turn into rentals during this 10-year period, the largest gain among the 30 cities analyzed.

Continue reading here. 

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Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
Phone: 602-441-5354
2400 E. Arizona Biltmore Circle
Suite 1400
Phoenix, AZ 85016

Revealed: How Much Earning Power Is Needed to Buy a Home in Each of America’s 50 Largest Cities by DailyMail Featured by SVN | SFRhub Advisors

In a recent article by DailyMail, it was revealed how much earning power is needed to buy a home in the 50 largest cities in the US. This just furthermore exemplifies that renting is the way to go! Keep reading below to find out what the minimum income to buy a home is for your state.

Originally posted by DailyMail.

Buying a house is increasingly out of reach in America’s biggest cities, with California home to the four metropolitan areas requiring the highest incomes in the country to make home-ownership affordable.

San Jose topped the list, with residents needing to earn $274,623 a year in order to buy a home, followed by San Francisco ($213,727), San Diego ($130,986) and Los Angeles ($114,908), according to data compiled by HSH.com, a national consumer and mortgage information publisher.

‘The economy is good, but there are just not enough homes for sale,’ said Lawrence Yun, chief economist with the National Association of Realtors in an interview with DailyMail.com. ‘The builders have not been building to adequately meet the rising demand.’

Income Per State

This map illustrates how much one must earn in order to buy a home in each of the 50 largest metropolitan housing markets in America

HSH.com analyzed the 50 most densely populated cities in the U.S. and then calculated monthly principal, interest, property tax and insurance costs to determine what buyers would pay for a 30-year fixed rate mortgage.

Researchers then projected a 20 percent down payment and calculated how much prospective homeowners would need to make in order to hold their total monthly housing payment to no more than 28 percent of their gross income.

The economy is good, but there are just not enough homes for sale. -Lawrence Yun, National Association of Realtors
By those measures, Boston came in fifth place, with wannabe homeowners having to rake in $109,411 annually in order to buy a place of their own.

Seattle came in sixth ($109,275), followed by New York City ($103,235), Washington D.C. ($96,144), Denver, Colorado ($93,263) and Portland, Oregon ($85,369).

HowMuch.net mapped the HSH.com results to illustrate where home buying pain is felt the most severely. Their map reveals three income tiers needed to afford a median home.

By those measures, the West Coast stood out as the most expensive place in the country for home buyers.

The East Coast was considered second-tier, which included major cities further south along the Atlantic Coast, including Miami ($78,337) and Providence, Rhode Island ($75,808).

Continue reading here.

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Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
Phone: 602-441-5354
2400 E. Arizona Biltmore Circle
Suite 1400
Phoenix, AZ 85016

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