If you want to purchase an investment property, one of the best ways to get into the property investment market is to buy a single-family home. A single-family home can be a lucrative investment, as you can rent out the house to cover the mortgage and sell the home and cash in on the equity you built up. There are a few reasons why this is such an excellent investment.

Fast Appreciation

When you purchase a single-family home, you are going to enjoy fast appreciation on the property. The home's value should appreciate just like others in the neighborhood, which means the value of the home you bought will grow, giving you more equity. Single-family properties tend to appreciate at a faster rate than other types of properties.

No Utility Responsibilities

When renting out a home, the tenant usually puts the utilities in their name and takes on paying for them. In this case, you will not have to worry about if the tenants are responsible about their electricity and water usage, and you will not have to budget to pay for these expenses yourself. This helps drive down the cost of managing this investment.

Low Maintenance Needs

A single-family home only has one of everything, such as one washer and one dryer. It is usually a lot easier to manage as an investment property than a multiple-family dwelling is, where you have to take care of multiple units. There are fewer issues that need your attention when you rent out a single-family home.

Good Rental Rates

Next, single-family homes provide reasonable rental rates. Tenants are usually willing to pay more to rent out a home, even if it is the same size and has as many bedrooms as an apartment, because of all the extra outdoor space they will get with the property. You can make more money renting out a home, in general, than renting out an apartment. You can use this money to pay off the mortgage and take care of the property. This will help you make money on the property.

If you want to purchase your first investment property, start with a single-family home. They are easy to manage on your own, have low maintenance needs, have a fast appreciation, and offer reasonable rental rates that will allow you to make money on your investment.

For more information on how to buy single family homes, contact a real estate business near you.