Rural real estate investing has become a trending buzzword since COVID-19 as more Americans relocate from urban cities to small, more affordable towns and suburbs while continuing to work remotely. As a result, rural multifamily properties are becoming a viable investment option for savvy investors looking to diversify their portfolios by targeting new markets.

However, most traditional investors remain on the fence, unable to decide whether investing in rural areas is a smart decision. Therefore, in this post, we’ll briefly explain the key benefits of buying rental properties in small towns, suburbs, and residential communities.

5 Benefits of Investing in Rural Multifamily Properties

1. Less Competition and Low Prices

The biggest benefit of purchasing rental properties in rural areas is less competition, as most traditional investors opt for more in-demand areas and properties. As a result, multifamily apartments and condos cost significantly less in rural areas while offering nearly the same amenities and facilities.

2. High Availability

Due to the lack of competition, rental properties remain listed on the market for significantly longer than urban listings. As a result, you can find several options in different towns and suburbs in every county and state.

3. Profitable Resales

Regardless of the location, real estate properties typically appreciate over time due to inflation and other reasons. Therefore, even if a property’s physical structure depreciates over time, the land it sits on continues to rise in value. As a result, investors can generate profit on resale after a few years.

4. Lower Property Taxes

With inflation on the rise, most investors are concerned about their property tax bills. One of the most important benefits rural multifamily properties offer is lower taxes. This is mainly because property values are lower compared to larger cities.

5. A Sharp Increase in Demand for Rural Rental Properties

Since the start of COVID-19, millions of Americans have relocated from large cities to smaller towns and communities in rural areas to save money on rent and other expenses. As a result, there’s been a sharp increase in demand for rural rental properties.

Therefore, investing in a multifamily property while the demand continues to soar is an excellent way to increase your cash flow and rental income as prices become more competitive.

Wrapping Up

Rural multifamily investment properties are rapidly becoming popular among investors, especially following the recent spike in property prices in urban areas. While these properties offer an excellent opportunity from an investment perspective, the ROI depends heavily on different macroeconomic factors, such as amenities, facilities, infrastructure, work opportunities, etc.

Therefore, do research on rural properties extensively to find the most profitable options. If you need help, you can get in touch with the experts at CHRE to answer your questions and guide you regarding the dos and don’ts.

If you want to invest in a rental property in Rio Grande Valley, feel free to explore our vast inventory.