Investing in real estate can be a great way to build long-term wealth. One appealing real estate investment strategy is buying model homes from home builders like Ryan Homes. Model homes allow potential home buyers to view fully furnished and decorated model units. For investors, model homes can generate rental income and appreciate in value over time. However, investing in model homes also carries risks that need to be considered. This article provides tips on how to approach investing in Ryan Homes model homes.
Research Ryan Homes model home investment opportunities in your area
The first step is researching the Ryan Homes communities in your area to understand what model homes may be available for sale. Model homes are typically listed after a new community is sold out and closed. Contact Ryan Homes to inquire about upcoming model home sales. Consider the location, size, amenities of the home, and potential rental demand. Drive by model homes on the market to evaluate condition and get a feel for the neighborhood.
Understand Ryan Homes model home pricing and financing
Model homes are often sold at a premium price point given the upgrades and furnishings included. Expect to pay 10-20% above the base sales price for a standard home. Model homes may also have higher HOA fees. Consider whether you want to pay cash or finance the purchase. Financing will require a larger down payment than a typical home. Shop mortgage rates to find competitive offers.
Factor in pre-rental repairs and upgrades
While move-in ready, model homes may require repairs or upgrades before renting like painting neutral colors or having carpets steam cleaned. Budget several thousand dollars for pre-rental preparations. Also factor in furnishing costs if the model home is unfurnished. Carefully inventory furnishings to understand what conveys with the sale.
Market and manage the model home as a rental
Model homes tend to rent at premium prices given their upgraded features. List on multiple sites and promote the furnished, luxury features. Require tenants to pay utilities and adhere to strict no smoking and no pet policies. Hire a property manager to handle tenant screening and compliance. Schedule quarterly maintenance visits to keep the home in top shape.
Investing in Ryan Homes model homes can be rewarding but requires careful evaluation of purchase price, financing, repairs, and rental management. With proper research and planning, model homes can generate strong rents and appreciation over the long-term.