Real Estate prices have been dismal in many areas of the country, and just sad in others.
Rents are on the rise – as high as 7.8% higher than previous years in parts of the country.
There was a time when fixing and flipping was very lucrative. You could buy a distressed home at well below market value, put in the sweat equity or hire someone to make it shine, and when its all dressed to the nines – you flip it for a quick profit on your money and hopefully before you’ve had to make too many mortgage payments.
Then all the talk was about “the bubble” and in some areas the fix and flip became a thing of the past, forgotten, mainly due to high cost of renovations and low yield on the resale values.
I’m not suggesting getting into the fix and flip business again, although flip ROI’s are up about 25% from 2011, according to RealtyTrac. Distressed and abandoned properties in more upscale neighborhoods have yielded those hardy souls still working the fix and flip up to 20% fast profits. The Wholesale market has jumped as well, providing another avenue for consideration.
I’m talking about a longer term investment, an investment in your own future. Distressed single family homes that you purchase, rehab and then RENT OUT. Now wait, before you laugh and click off the page, have you taken a good hard look at rental rates in your area? Have you looked long and carefully at single family home prices in median income neighborhoods?
The demand for single family rentals are up in almost all areas of the country, and so are the monthly rent amounts their commanding. Might it be a good time and a great investment IN YOUR OWN INDUSTRY and for your own business interests to consider becoming a —(dare I say it??? GULP) LANDLORD?
Just a suggestion for creating possible second or third stream of income to create an increase in your overall business plan. Most Realtors or Sole Proprietor small businesses don’t have a retirement plan in place, or they’ve taken BIG hits in the last 7-8 years. While prices and interest rates are down, who knows? This just might work for you long term.