CALL US TODAY! 602-989-1592

Is the Residential Rental Market finally a good Investment?

The current economic situation has changed the real estate market and rental rates for single family hones are on an upward trend. The ability to borrow and purchase a new home has become much more difficult. The lenders are making potential buyer “jump through hopes” that never existed before. The down payment  amount has changed and unlike the situation where parents helped young couples with a down payment, these parents have lost their retirement nest egg and can no longer help.

The depressed home values, which I don’t see changing in the next few years, have made it possible to rent a home, cover the mortgage payment and even have a reserve cash flow potential. For those that can afford this type of an investment, I recommend making rental real estate a part of your overall investment portfolio. A 10 to 20% portion of a portfolio placed in rental homes, may be a wise investment for a seven to ten year hold.

Inexpensive is not necessarily good when it comes to investment homes. Select an area that has upside potential and can attract better tenants. Interest rates are favorable and so is the availability of homes.

I am still “high” on Arizona and am working with a portion of my clients to enter this market.

_____________________________________________________________________________________________

A time like this demands strong minds, great hearts, true faith and ready hands.

Josiah G. Holland

Have a great day!

Leave a Comment





* Copy This Password *

* Type Or Paste Password Here *