| Historically, construction for multi-unit rental properties has consisted of apartment buildings and smaller multi-family properties in the two to four-unit ranges. However, a new category of multi-unit rental property has been attracting more attention from both renters and long-term buy and hold investors: build-for-rent properties often referred to as BFR investment communities.
A typical BFR property is a community built specifically for renters that want more of a single-family experience, but with the convenience of a professionally managed community with desirable amenities. These communities typically consist of one to three-bedroom attached or detached homes with upscale finishes such as stainless appliances, quartz countertops, high ceilings, and small private yards. These properties include higher-end finishes than a typical entry-level apartment, and typically include in-unit washers and dryers, kitchen islands, hardwood-style floors, high-end lighting, and other finishes normally associated with upscale homes. A BFR community will often include amenities like a swimming pool, tennis courts, dog park, clubhouse or meeting facilities, and a workout/gym facility on site. Renters enjoy the convenience of professional management without the burdens of HOA fees or the responsibility of servicing long-term mortgage debt. BFR neighborhoods provide privacy, quality, convenience, and luxury and meet the need for more space along with a sense of community. These communities fill a growing niche for renters with lifestyle desires that are different than typical apartment renters who normally view apartment living as a temporary housing solution. Renters often lease BFR property for longer periods because they value the upscale finishes and the nearby amenities, and the single-family-home style of privacy. Investors like BFR communities because the renewal and retention rates are higher than a typical apartment community. Also, BFR rent increases have generally outpaced apartments which is another advantage for investors seeking to maximize return on investment. The U.S. Census Bureau estimates that 65% of Americans under the age of 35 currently rent their home. Renting is more affordable than buying a home in 18 of the country’s 25 most populated counties, and in 29 of 44 counties with a population of 1 million or more, including Los Angeles, San Diego, Chicago, Houston and Orange County, California. Where can 1031 exchange investors find BFR investments? One source of 1031 exchange replacement property for investors seeking to acquire multiple assets is SVN | SFRhhub Advisors (www.sfrhub.com). The SFRhub.com is an online marketplace for buyers and sellers dedicated to single-family rental (SFR) and build-for-rent (BFR) investment portfolios of five or more homes. |
1031 Exchange Webinars |
|
|
|
|
Call Us
Can Your Vacation Home Qualify for a 1031 Exchange?
New Location, Same Great Customer Service We are delighted to announce that Asset Preservation New York office has moved and is now located in Westhampton Beach, New York! Our new office is located at 135 [...]
Selling Appreciated Property
The Federal Tax Code provides a number of ways for taxpayers to dispose of, exchange, or sell appreciated property and receive tax benefits. Let’s briefly go over several of these ways. Read More » Join us [...]
2023: Expanded 1031 Exchange Opportunities for Investors
The real estate market today is very different than in recent years. Learn how the changing market provides more opportunity for 1031 exchange investors. Read More » Headwinds, at Least for Next Three Quarters No [...]
Wishing You a Happy Holidays
Dear Clients and Associates, On behalf of the API family, I thank you for your patronage and support this past year. It was a rollercoaster year in the real estate industry, and particularly for 1031 [...]