If you are interested in becoming an income property investor, now is a great time to get started. There are many foreclosures on the market that will make a great investment property. But there is a word of caution – you have to have the cash and you have to act fast.
The banks are not real estate investors, but they are holding onto properties longer than usual because they don’t want to over saturate the market with foreclosures. So most of the lending institutions are keeping the properties in their inventory so they won’t flood the market. So once a foreclosure property hits the open market, investors are on it right away and many times are bidding over the listing price.
Yes it’s a good time to invest. But every state is different. California properties are hard to find where the loan payment will be lower than the rental income. In other words, you want to have positive cash flow, and in order to do that, you must take all the expenses into account for the property. Once you do that, then you can do your market analysis on what the rental rates are for that area. If you have a positive cash flow, then it’s a good investment.
There are many states that have a fairly stable housing economy, but have had a high influx of foreclosures. Online real estate sites are a great way to get started looking for investment properties. Find a good realtor for the areas you are looking in, along with a recommendation for a local property management company. These two resources will make your property investing go much smoother.
Real estate investment is a good choice right now. Take your time investigating areas of the country that have a stable economy where people can afford the rents, and then scour the market for that diamond in the rough and start building your real estate empire.
Real Estate Investment - Is Now the Right Time to Invest in Rental Property?
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