### *We don't have a housing shortage. We have a shortage of desirable houses.*

 

In this article, we will explain the difference, and what real estate investors like you can do to profit from this misunderstood reality.

 

## Problem: Shortage Of Houses In Desirable Markets

 

Now that work from home has become widely acceptable, and the new normal, an overwhelming number of people have decided to pick up and relocate to one of several more attractive markets. This includes "sun belt", lower tax, and economically well-positioned destinations such as Phoenix, San Antonio, Jacksonville, Tampa, Orlando, West Palm Beach, Miami, Raleigh, Columbus, etc.

 

The problem is, there simply aren't enough enough homes for all of the people that want to move to these locations. A basic supply and demand imbalance has caused home prices in these markets to skyrocket. 

 

To use emojis, you have people 🧑🏾‍🤝‍🧑🏽 who have the same idea💡 to live some place nice 🌴 so they move there 🚚 and try to buy the same houses 🏠 which causes the houses to dramatically increase in price 📈 💰🚀.

 

## Solution for Investors: Build More Homes

 

If you're a real estate investor, you can profit by increasing the housing supply in these markets. You can use OfferMarket's Ground Up Construction program to fund land acquisition and construction budget -- up to 60% of the land cost and 100% of construction.

 

## Solution for Buyers: Consider Other Markets

 

Make no mistake, there is a housing bubble and mania that has swept through many regions and markets. Fear of missing out is real, and can drive people to make decisions that they later come to regret. Avoid overpaying for your next home. Avoid bidding wars and settling on a home that you otherwise would not be interested in buying in a normal market. 

 

Take a step back and re-evaluate your options:

 

- What are some less well-known markets that offer better value and are fundamentally attractive with good prospects for long term home price appreciation?
- Does it make sense to move right now, or can you afford to be patient and let this housing mania and bubble deflate?
- Are there off market fixer uppers available for a better value? [Subscribe to our off market deal flow](https://www.offermarket.us/survey/subscribe/deal-flow).

 

## Shortage Of Houses In Desirable Condition

 

There is a strong preference among buyers to want turnkey, move-in ready homes. It makes sense: the last thing buyers want to do after paying the down payment on a home is to coordinate moving into a home that needs to be renovated. Not only is it an additional cost, it's a logistical complication figuring out timing to move, contractors, planning the DIY components to save money. The limited housing supply on the market has moved many savvy, daring and well capitalized buyers to consider properties that need fixing.

 

## Solution for Investors: Renovate More Homes

 

Fix and flip investors are important participants in the housing market. It's one thing to encourage investors to flip more homes, it's another to actually find the distressed inventory (i.e. houses in poor condition) required to increase the number of homes being flipped in a given market.

 

To find more inventory:

 

- [Subscribe to off market deal flow](https://www.offermarket.us/survey/subscribe/deal-flow)
- Network with wholesalers
- Drive for dollars -- look for distressed houses in your market and get in contact with the owner

 

To fund your fix and flip projects, [get a bridge loan quote from OfferMarket](https://www.offermarket.us/loans). We fund up to 90% of the purchase price and 100% of the rehab and can close your transaction in 15 days. This type of loan is commonly referred to at "fix and flip" and "hard money".

 

## Solution for Buyers: Consider Fixer Upper Houses

 

Buying a fixer upper is a great way build home equity and wealth. There are loan programs for primary residence homebuyers such as the [FHA 203k]9https://www.offermarket.us/real-estate-glossary/fha-203k-loan) renovation loan that includes the scope of repairs in your mortgage, allowing you to put as little as 3.5% down and have your rehab component added to your mortgage. 

 

## Summary: Focus On Value

 

Think like value investor. Real estate is an asset, and should be thought of as an investment. As with the stock market, if everyone is chasing the same investment strategy, a bubble forms, prices get out of control, animal spirits and FOMO make buyers overpay. 

 

Focus on markets and inventory that is less desirable. That is where the value is. There will be times when the most attractive markets present attractive buying opportunities -- think aftermath of the 2008 financial crisis (2009-12) in South Florida. That time is not now. Cooler heads and a disciplined approach will prevail.

We don't have a housing shortage. We have a shortage of desirable housing and that is an important distinction that real estate investors can profit from.

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What Housing Shortage? | OfferMarket Blog

What Housing Shortage?

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Towanda, PA 18848 - Real Estate Market - OfferMarket

Towanda, PA

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SFR Investing

Are SFRs a good rental property investment?

How do I find SFRs for sale?

Related concepts:

Join OfferMarket

In real estate, the acronym "**SFR**" stands for *single family rental*. Technically, single family residential real estate includes 1-4 unit properties ranging from...

- detached single unit homes
- attached townhomes ("row homes")
- duplex
- triplex
- quadplex

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**💡 Pro tip:** To learn more about SFRs, read our article "[What is a SFR?](https://www.offermarket.us/blog/what-is-a-sfr)"

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## SFR Investing

Many real estate investors get their start with SFRs and then expand into small multifamily (5+ residential) and other commercial properties. Some of the most successful real estate investors strictly focus on SFRs, with many focusing entirely on one subset of SFRs -- i.e. only single unit detached homes, or only duplexes.

The most common form of SFR investing is long term leases (12 to 36 months) for unfurnished properties: long term rentals ("LTR"). Some investors focus on short term rentals ("STR"), while others focus on mid-term rentals ("MTR"). 

## Are SFRs a good rental property investment?

SFRs -- much like duplexes, triplexes, quadplexes and multifamily -- can make a great investment. As with any investment, it all depends on the quality of the asset, the purchase price, and the local market conditions. Here are things the most successful single family rental property investors focus on:

- [Cap rate](https://www.offermarket.us/real-estate-glossary/cap-rate-capitalization-rate)
- [Cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return)
- [Free cash flow](https://www.offermarket.us/real-estate-glossary/free-cash-flow)
- Construction (year built, materials used, building quality)
- Local market trends (population growth, housing market appreciation, supply and demand)

The single family rental property asset class has grown tremendously since the 2008 subprime mortgage financial crisis with the likes of Blackstone (Invitation Homes), and American Homes 4 Rent each owning more than 50,000 detached single family homes in their portfolios.

## How do I find SFRs for sale?

The availability of quadplexes varies based on the local market. Here is where you can find your next quadplex investment property:

- Zillow
- Redfin
- OfferMarket
- Facebook Marketplace
- Craigslist
- Local wholesaler [buyer's list](https://www.offermarket.us/guides/real-estate-wholesaling-how-to-build-a-buyers-list)

## Related concepts:

- [SFR](https://www.offermarket.us/real-estate-glossary/sfr)
- [Duplex](https://www.offermarket.us/real-estate-glossary/duplex)
- [Triplex](https://www.offermarket.us/real-estate-glossary/triplex)
- [Fourplex](https://www.offermarket.us/real-estate-glossary/fourplex)
- [House Hacking](https://www.offermarket.us/real-estate-glossary/house-hacking)

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## Join OfferMarket

OfferMarket is a real estate investing platform focused on serving SFR investors. We focus exclusively on 1-4 unit residential properties in non-rural markets. 

We hope you will **[accept our invitation](https://www.offermarket.us/listings?ref=content-sfr)** to join us and over 20,000 registered members.

Membership is entirely free and comes with the following benefits:

🏚️ **[Off market properties](https://www.offermarket.us/listings?ref=content-sfr)**
💰 **[Private lending](https://www.offermarket.us/loans?ref=content-sfr)**
☂️ **[Landlord insurance rate shopping](https://www.offermarket.us/insurance?ref=content-sfr)**
💡 **[Market insights](https://www.youtube.com/channel/UCRoNHXFVgI36SV0QQpyf9fw)**

Our mission is to help you build wealth through real estate and we look forward to contributing to your success!

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An SFR is a single family rental from 1-4 units. There's more to learn about SFRs at OfferMarket.

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