When it comes to real estate investing, single-family homes (SFHs) often don’t get the same spotlight as large apartment complexes. At Ellsbury Group, we’ve helped dozens of clients—both local and out-of-state—acquire and scale multi-million-dollar rental portfolios built on single-family homes. For many investors—especially those seeking dependable returns, easier management, and a more accessible path to building wealth—single-family rentals offer one of the best risk-adjusted opportunities in real estate today.
Why Single-Family Home Rentals Make Sense
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Easier to Self-Manage
Single-family rentals are the simplest property type to manage. With just one tenant and one property, there’s less wear and tear, fewer service calls, and no need to navigate multiple units under one roof. Many SFH investors comfortably self-manage their properties—even from out of state—with modern tools and local service partners. -
Tenants Handle Utilities and Lawn Care
Unlike multifamily properties where landlords often pay some utilities or maintain common areas, SFH tenants typically cover all utilities—gas, electric, water, trash, and sometimes even internet. They’re also generally responsible for lawn maintenance and snow removal, reducing your ongoing operating costs and management burden. -
Longer Tenant Retention
SFH tenants tend to stay longer than apartment tenants. Families, couples, and long-term renters appreciate the privacy, space, and sense of “home” that single-family properties provide. Longer tenancy means less turnover, lower vacancy rates, and reduced make-ready expenses—a major advantage for your bottom line. -
Attractive Cash-on-Cash Returns
In many Midwestern markets, SFH rentals can deliver 10–15% cash-on-cash returns, even after financing and expenses. That level of return, paired with long-term appreciation and tax advantages, creates a compelling path toward both income and equity growth. -
Easier Entry and More Opportunities
There are far more single-family homes available than multifamily properties, making it easier for new investors to find deals that fit their budget and criteria. It’s also a more approachable entry point into real estate investing—both financially and operationally. You can start small, learn the ropes, and grow at your own pace.
A Balanced View: The Downsides to Know
Of course, SFH rentals aren’t perfect. Consider these tradeoffs:
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Limited Income Density: With only one unit per property, single-family homes generate less income per square foot of land compared to multifamily buildings.
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Higher Vacancy Risk per Door: When a tenant moves out, your entire property becomes vacant. In a multifamily property, other units keep producing income even if one goes empty.
Why Multifamily Still Has Its Place
Multifamily investing offers faster scalability. Buying a 10- or 20-unit building lets you grow your portfolio and cash flow more rapidly. Additionally, multifamily properties provide economies of scale—shared maintenance, consolidated utilities, and stronger income diversification. However, the barrier to entry is higher—both in cost and experience. That’s why many successful multifamily investors start with single-family homes and build up from there.
Real Success Stories from Ellsbury
At Ellsbury Group, we’ve sold dozens of single-family rental properties to both in-state and out-of-state clients. Many of these investors have since scaled into multi-million-dollar portfolios, creating steady income streams and generational wealth—all starting with one well-bought home. Our clients love the simplicity, the strong cash flow, and the hands-off nature of SFH investments in Midwest markets.
Final Thoughts
Single-family rentals might seem small compared to multifamily projects, but their simplicity, tenant stability, and reliable returns make them a cornerstone of smart real estate strategy. Whether you’re a first-time investor or a seasoned pro diversifying your portfolio, SFH rentals offer a fantastic blend of accessibility and performance.
If you’re ready to explore opportunities or see available properties, Ellsbury Group is here to help you build your portfolio—one solid investment at a time. Contact us today to get started.
