Think megacorporations are your biggest competition in the single-family rental market? Think again! For busy parents investing in real estate as a side hustle, mom-and-pop investors are actually the true rivals in the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) game. Here’s why.
Who owns single-family homes in the U.S.? According to a recent Wolf Street article, there are 146 million housing units in the country, with 91% occupied and 9% (or 14 million) vacant. Of those vacant homes, 56% are single-family properties—about 8 million potential opportunities for BRRRR investors.
But let’s focus on the occupied units. Of the 132 million occupied housing units, 66% are owner-occupied, leaving 34% (or 45 million) occupied by renters. Breaking down those rentals, we see:
- 65% (or 29 million) are apartments in multifamily buildings.
- 31% (or 14 million) are single-family homes.
- 4% (or 2 million) are mobile homes, boats, and other types.
Now, here’s where it gets interesting for BRRRR investors like you. There are 14 million single-family rental homes across the U.S. That’s 14 million opportunities where renters are already in place, and they’re in high demand by other investors.
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Who Owns These Single-Family Rentals?
- 80% (or 11.2 million) of single-family rentals are owned by “mom-and-pop” investors with 1-9 properties.
- 14% (or 1.96 million) are owned by landlords with 10-99 units.
- 3% by landlords with 100-999 units.
- Only 3% (about 400,000 houses) are owned by landlords with 1,000+ units, the so-called megacorporations.
For busy, married parents using the BRRRR method to expand their rental portfolios, this data is a game-changer. Despite the hype around megacorporations buying up single-family homes, the reality is that 94% of occupied single-family rentals are owned by mom-and-pop investors. Your real competition? It’s not the megacorps, but rather the countless mom-and-pop investors across the country.
Feeling overwhelmed at the idea of competing with giant corporations? You don’t have to. In reality, it’s fellow small-scale investors who are competing for the same off-market deals. Understanding this can give you a leg up as you hunt for your next BRRRR opportunity.
Ready to make your next move and leverage these insights? Drop a comment or message me to start finding and funding your next rental property using the BRRRR method. Let’s work together to expand your portfolio and make real estate work for your family!
Common FAQs using the BRRRR Investing Strategy:
I use and highly recommend DealCheck.io.
With none of your own money, yes. Partnerships are the best way to grow your portfolio without using your own money. Utilizing creative strategies like Hard Money (via W2 Cap Capital LLC) will allow you to fund the purchase and rehab with only 10% down (sometimes 0% down given the opportunity).
Off market. If you don’t know how to pull an off-market list or the mailers you’re sending aren’t producing the results you want, watch the free video at https://FindYourNextBRRRR.com to see exactly how I’m finding our most profitable properties.