Single Family Rentals Becomes an Investment Strategy
In the early 2000’s, Alex Hemani and two partners began investing in spec homes, building one at a time, and then investing the profits into the next one. By the middle of the decade, Alex believed that the residential real estate bubble would soon burst, and he began an investment strategy that today is embraced by everybody from mom-and-pop investors, to Wall Street financiers: Single Family Rentals (SFR).
Back then, Alex concluded that home value appreciation that was running then more than double household income increases, was not sustainable, especially for young families. Demographics were changing too, and many people who would historically be looking to buy their first home, were saddled with student loan debt and valued personal flexibility and lifestyle, over home ownership.
Home Ownership Is Not for Everybody
While home ownership does not make economic or life-style sense to everybody, neither does apartment living, especially to young families who want single family neighborhood amenities, without being tied down by a mortgage.
Alex began buying class B and C homes at a discount, and instead of a following the fix-and-flip strategy that has received so much attention in the media, he began building a portfolio of Single Family Rentals that now numbers approximately 300.
A Formula for Successful SFR Investing
Alex has developed a formula for SFR investing that provides the holy grail of immediate cash flow and future appreciation. Alex has consistently been able to maintain cash-on-cash returns in excess of 10%.
The elements of his success include:
- In-depth market knowledge
- Favorable demographic, population and employment trends
- Disciplined discount buying
- Sufficient leverage
- In-house renovation and property management teams
Turnkey Rentals: Good Yields with Reduced Risk
Alex is now sharing his success with others through turnkey rentals. In this model, Alex acquires suitable properties, performs necessary renovations, leases the property to qualified tenants and provides ongoing property management services. Investors buy the properties with all work done, tenants and property management in place, with no startup risk, a guaranteed income stream and the benefit of all future appreciation.
Single Family Rentals are Good for Neighborhoods
Alex is at the forefront of preserving and transitioning existing single-family housing into affordable, single-family rental (SFR) units. This is allowing young-families to establish roots in the community, enabling seniors to remain in the neighborhoods where they have lived for decades, and providing affordable housing options for teachers, public-safety officers, nurses and other middle-income employees to live in the communities they serve.
Speaking, Writing, Coaching and Consulting
Alex is also sharing his expertise with individual and institutional SFR investors through interviews, articles, public speaking and consulting on a multitude of Single Family Rental and investment real estate subjects.
A successful, serial entrepreneur, Alex previously built, and sold, successful companies in the financial and travel industries.