Urban Redevelopment HOW RENEWAL CAN GUIDE REAL ESTATE INVESTING.
by Jeff Pepperney, Real Property Management
rban redevelopment can open new opportunities for single-family rental home investors. But could it also guide your investing strategy? As increasing num- bers of entrepreneurs have entered the single-family rental home market, savvy investors are looking for new ways to expand their portfolios. Long popular with house flippers, starting or joining an urban redevelopment project could also have significant advantages for buy- and-hold single-family rental home investors. Urban redevelopment or renewal is a process through which areas or neighborhoods in a city are improved for the purpose of attracting more stable, affluent residents. For investors and developers, one of the most exciting parts of urban redevelopment is the opportunity to have a real impact on troubled parts of town. By buying, preparing, and renting quality single-family properties, rental home investors can U
contribute significantly to the revitalization of a neigh- borhood and invite others to do the same. But there are a few things to know before diving into an urban redevelopment project. For example, sin- gle-family rentals located in suburban areas are often in need of some repairs or improvements. Accord- ing to urban housing experts, investors looking for urban properties should be prepared for houses in much worse shape than you would typically find in the suburbs. What this means for rental home investors is that urban properties may need a larger budget for the remodeling and repairs necessary to bring them up to a habitable condition. Once you have done so, howev- er, your urban rental home could become a profitable source of rental income for many years to come. Buying rental homes in urban areas can also come with some unique challenges. For example, if you are
60 | think realty magazine :: february 2020
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