10 Advantages of Build-to-Rent Investment Properties

Meridian Pacific Properties is a full-service real estate company and pioneers in build-to-rent investment properties. We guide new and experienced investors to financial success. We have 954 properties under management, 425 new homes built and counting, and 229 investor client. Our team created a way for investors to have immediate cash flow and long-term appreciation. Why should you choose to invest in build-to-rent, turn-key properties? We have listed the top 10 advantages below and how we ensure the value of your investment.

Lower Maintenance

Newly constructed homes typically have low maintenance costs which helps to improve cash flow. Additionally, we provide our exclusive, high-end rental property management services with exceptional property upkeep, and have an on-call service team that ensure our investors do not lose money on sub-par property management.

Strong Demand for New Construction

Looking at appreciation comparisons by metro area, the higher appreciation in Memphis supports the belief that people are moving out of big cities and into secondary markets and into suburban single-family rental homes. Home builders continue to keep up with demand at an increasing rate and build-to-rent developments are expected to grow across the country. Read more about the future of the housing economy and rentals.

Comparable Rent Ratios

Memphis holds a strong economic base with a number Fortune 500 companies, is affordable in terms of wages and cost of housing, has a low vacancy rate, low maintenance due to non-extreme weather conditions, has very good rent ratios on properties and  very competitive cost points.

Highest Risk-Adjusted Returns

Meridian Pacific Properties specializes in high yield, Class A single-family property investments for wealth building and retirement planning. Residential real estate is one of the most stable investments and can generate the highest overall returns. We streamline our vertical for maximum efficiency and for investors who are risk averse. We combine strategies that allows investors to create a balanced portfolio while being properly leveraged across the risks associated with real estate investing. Building a portfolio with a mix of these strategies allows an investor to capitalize on each market segment’s benefits while leveraging the portfolio’s risks associated with vacancy, maintenance, market fluctuations, and liquidity.

Stronger Home Appreciation

The lack of inventory plus rising home prices in the current buying market across the country is enough reason to keep renters from becoming homebuyers, giving rental homes more value. While home prices and appreciation in Memphis increased in 2020, the Memphis market is still considered to be very affordable. The National Association of Realtors (NAR) reported in the graph here that the Memphis market remains undervalued, despite the uptick in prices, and continues to make for an ideal environment for real estate investing. The NAR also showed that home price appreciation in Memphis was up 20.5 percent versus the national average of 14.9 percent year-over-year.

Attracts Better Quality Tenants

Our property management company also holds a very strict screening process because we want to find the best tenants. Meridian Property Management only accept about 50 percent of applicants, which is far fewer than other property management companies struggling to fill vacancies. Once we find a great tenant, we go over the rental agreement in detail. We explain exactly what maintenance services are covered by the homeowner, and what we expect from our tenants. We also hold our tenants responsible for any damage done to the property and will strictly enforce our rental agreements.

Strategic Locations

Our drive to build high-yield residential investment properties in well-located, high-demand neighborhoods becomes an attractive option for Meridian Pacific Property investors looking to grow their portfolios. We build and develops in lower property tax states. In Memphis, specifically, the county has rates between 0.6% – 1.6% with modestly priced insurance which can provide a stronger return of investment (ROI). See why Memphis stood out as having the best potential to optimize returns and minimize risk.

Includes Builder Warranties

New construction home warranties generally cover materials and workmanship for one to two years including damages, normal deterioration, and natural disasters. Reach out to us directly to find out what the Builder Warranties include and exclude.

Higher Rent Appreciation

According to the Apartment List National Rent Report, the first half of 2021 saw the fastest growing rent prices since 2017. They continued that prices are up by 10.3 percent compared to this time last year and up 9.4 percent compared to the pre-pandemic level from March 2020. On a national level, median rent has increased by 11.4 percent this year. A drastic difference compared with only 3.3 percent for the first six months of 2017, 2018 and 2019.

Less Tenant Turnover

Meridian Property Management maintains the lowest vacancy levels, provide exceptional property upkeep and have an on-call service team. Meridian beat competitors with a 95.8 percent occupancy rate. Vacancy sits low at only 4.2 percent and an exceptional 74 percent lease renewal rate. The rental collection rate is an impressive 99.34 percent. This creates higher returns for owners of rental properties.

 

When you work with Meridian Pacific Properties, the advantages do not stop here. Our full-range services, including complimentary portfolio analysis, financing and processing, and property management deliver a complete solution to get the most value from your rental income property.

Want to know more? Reach out to our office any time or request more information.

 



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