What is Build to Rent and How Does it Work?
With recent challenges to the housing market, the trend of building to rent is taking hold across the PNW & Northern California. Further, the last few years have caused a housing demand that has not satisfied the increased housing needs. Real estate is commonly known as a secure long-term investment and can increase a personal wealth portfolio. Careful planning and developing partnerships with the right on-your-lot builder could ensure that build-to-rent is the next perfect investment project.
What is Build to Rent?
A build-to-rent project is pretty straightforward in the description but has many avenues of opportunity for the individual investor.
Since locating existing homes that are truly rentable and considered affordable housing is becoming increasingly difficult, investors are selecting to find a property and then build a home with the intent of renting the house. This built for rent home could be a long-term tenant or short-term vacation rental. Either way, both parties win with a beautiful new custom home that often boasts a warranty from the builder.
Further, local jurisdictions are modifying policies that make building a second dwelling easier than ever. Many families are realizing an exciting opportunity of building an Accessory Dwelling Unit (ADU) on their existing property to increase their personal wealth portfolio or create a safe space for extended family to reside.
How does Build to Rent work?
Experienced investors understand following a good project framework while consistently working towards the goal will ensure a successful project rather than get overwhelmed with details and decisions. If the goal is to have several rental properties in a portfolio, or a simple additional dwelling unit, the basic execution is the same. Here are three steps to consider:
- Determine Financing: Decide whether to secure financing or utilize an existing portfolio and pay cash.
- Partner with an on your lot builder: HiLine Homes understand the importance of partnerships, from our valued homeowner & investor to each trade partner and lender on our approved lender list. Developing relationships and leaning on industry leaders is important in building to rent or building your dream home.
- Select the floor plan to complement the property: View over 50+ home plans at HiLineHomes.com to find the perfect floorplan for the project.
Before you know it, you'll experience the reward of careful planning and the goal of building a home to rent with the first tenant moving in. Soon important decisions about property improvements, permitting, and paint colors will transition to whether to allow pets in this beautiful home or the type of welcome mat for the final touches.
Whether you are unsure what to do next or are ready with house plan ideas, meeting with an experienced HiLine Home Consultant will assist in developing a personalized build-to-rent journey. Learn more at HiLineHomes.com, which offers building resources and an extensive floor plan catalog to aid in the decision to build a home to rent confidently.