Experiences from an Entrepreneur

Maybe you have been thinking about getting into rental properties for years.  Have you read all the books, attended all the seminars, and bought every late night infomercial program?  Now is the time to get into the game.  The housing market in the US has never been better to become a real estate investor.  With homes at rock bottom prices, rental rates high, and interest rates on mortgages low, we may never see a more perfect opportunity in our lives to buy rental homes.

• Because of the volume of foreclosed homes in some neighborhoods, we are seeing 50-75% discounts off what you may have paid for that same home just 3 years ago.  This allows you to cash flow these properties like never before.  This is especially true in larger cities like Saint Paul Real Estate.
• Using rehab financing to purchase these homes, you can afford up front to repair all the major items in these properties.  This allows you to not only put out a better property into the rental pool, but allows you to reduce your yearly on-going maintenance expenses.  Also repairing the bigger ticket items reduces your long term capital expenditures on items such as roofs, furnaces, kitchens, and windows.
• Nationally, properties have appreciated by about 6% per year since the 1940s.  If you are buying a home for a 75% discount today, once the economy turns around, you will quickly find that this inexpensive house will be a nice nest egg of equity.
• With so many people losing their homes to short sales or foreclosure, the pool of tenants has increased.  Many of these people have good jobs and have plenty of money, but for one reason or another, they had a financial blip in their lives and lost their house.  They will be great tenants as they are used to owning and maintaining a home.

Don’t wait to buy that first investment property.  Call up an experience real estate agent, look on the MLS, do something, but get started now.