Who isn't looking for a way to make money in today's economy? Luckily the combination of still low mortgage rates paired with the still increasing need for rentals is making rental property investors a goldmine this year. Rents for single-family homes rose 2.3 percent last year from 2011, according to Trulia. Turning affordable homes into rentals is a great way to make your money work for you, and best of all you don't have to be a big shot investor to do so. Here are three rational reasons to invest in a rental property today!
Demand for rental housing is still expected to remain strong despite the slowly recovering housing market. Renters occupy about 14 million single-family homes with a total value of $2.8 trillion, according to an April report by Goldman Sachs Group Inc. Even Tucson property managers are continuing to see an increase of renters and properties to manage. Competition to purchase foreclosed and lower priced homes have risen among investors, but if you can buy in an area with a history of strong rental demand, you'll definitely get more bang for your buck!
Set Support Team
Something every investor and homeowner has to decide once they purchase a potential rental property is if they want to be a landlord or have a Tucson property management company take care of the property. If you decide to be your own landlord, you can still build a support team such as a real-estate agent experienced in investment property deals and reliable maintenance individuals to take care of repair issues as they arise in your rental. If you decide to enlist the help of a Tucson property manager, you'll have someone to take care of the essentials from maintenance to accounting usually starting at 10 percent or more of the rental price.
Many people are afraid to invest in a rental property because they're afraid they won't make any money notes prominent Tucson property management companies. But if you can get your hands on a foreclosed or distressed home the potential to make more increases. Foreclosure tracker RealtyTrac Inc. recently ranked U.S. metro areas, with a population of 500,000 or more, according to the supply of available foreclosures for sale and their discount versus other homes, among other criteria. Looking into areas that are not too expensive will also help your property become an income-generating rental. Because rent increases are currently higher than purchase increases in most places, your monthly mortgage payments have a good chance of being less than the market price for rent.
If you take the time to research locations for the best deals, build a solid support team, and do the math to maximize your best rental income, there's certainly no reason why you can't make your investment rental property work for you!