The time is now for real estate investors! There’s no better time to capitalize upon current market conditions and make your rental properties work for you. Tightened lending criteria dictates that many would-be buyers are likely to remain renters for an extended period of time. This means that a strategic acquisition of a rental property could potentially add value to your portfolio and give real credence to the power of the “buy and hold” strategy.
It’s a great time to work with your Realtor to explore the foreclosure/REO market. In many major metropolitan areas, you can find both foreclosed and REO properties (single family homes and condos alike) in prime areas – many times newer construction and never occupied! In the case of condos, be sure to speak with the property manager (on-site in many cases) to explore average demographic and vacancy rates. You don’t necessarily want to buy a unit in a building where there’s a 60% vacancy rate and a ton of units just like your available. Rather, it’s the time to look for single family homes at steep discounts (maybe with a little TLC needed) and condos in areas close to colleges where you can take advantage of a steady student demographic.
Also consider condos and single family homes in areas that are adjacent to major business centers with convenient access to public transportation like light rail and bus lines. These tend to attract working professionals that are the ideal tenant. They want to buy but cannot currently qualify, and thus, a candidate for a long-term renter.
(abbreviated article from: Investor Loft online)
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