Despite the fact that the real estate industry as a whole is also feeling the strain of the mortgage crisis, now may be the right time for you to consider your entree into investment property, or even expanding your current portfolio. Just like home values, apartment buildings and complexes have also dropped in price, and that means there are some great deals to be had for the right investor.
With so many people falling victim to homes foreclosures, there has been--and will soon be more of an influx of people who need a place to rent, and still have a decent income. These people will need to be carefully screened, and their credit may be hurt, but they may make very good tenants still. Be sure to vet these people fairly, taking into account that they many have filed bankruptcy, (wiping out most of their unpaid debt), which would give them the ability to pay rent and start over rebuilding their credit. These people may be not your typical renters and a good tenant screening process will pay off here!
As you know - there are risks with any investment, and buying rental properties is no different. However, there are still good reasons to take that risk. With a well managed property purchased conservatively, rental income will help pay the monthly mortgage on the property, and temporary short-falls due to maintenance or occupancy, can be make up with good management. Property investment is not for the weak of heart, but it can, and has produced positive results time and time again.
With so many people falling victim to homes foreclosures, there has been--and will soon be more of an influx of people who need a place to rent, and still have a decent income. These people will need to be carefully screened, and their credit may be hurt, but they may make very good tenants still. Be sure to vet these people fairly, taking into account that they many have filed bankruptcy, (wiping out most of their unpaid debt), which would give them the ability to pay rent and start over rebuilding their credit. These people may be not your typical renters and a good tenant screening process will pay off here!
As you know - there are risks with any investment, and buying rental properties is no different. However, there are still good reasons to take that risk. With a well managed property purchased conservatively, rental income will help pay the monthly mortgage on the property, and temporary short-falls due to maintenance or occupancy, can be make up with good management. Property investment is not for the weak of heart, but it can, and has produced positive results time and time again.
A word of caution: It is important that you do not get caught in the same situation that caused the real estate crisis we are in. Too many people purchased properties that had over-inflated values. Be sure to carefully research any property you consider including the property value, the location, and the comps, and make a significant downpayment so that you can guard against a month or two of lower income from your unit(s) should this happen. Remember to insure against the risks.
So, now really is a great time to buy -- but you have to make sure you get the best property for you. Do not over-extend yourself, make a significant downpayment, and choose a property that will pay off, (does not need major repairs, is in a desirable location, etc.)
If you need assistance finding a great residential investment property in the Carolinas, or have any questions of property investment of property management, please go to our website at http://www.kuester.com.