Diversify your investing. While you are waiting for you next flip property, now is the time to purchase rental properties and build long term wealth.
The rental market is on an upswing. As reported in The Seattle Times, rents are increasing because the foreclosure crisis has created a steady supply of renters in recent years, analysts said, and those people — with their tarnished credit records preventing them from quickly becoming homeowners again — need places to live. Many renters with the potential to buy a home are also sticking to the rental market given the home-price slump and the difficulty these days in getting a mortgage. “Fundamentally, it is an issue of supply and demand,” said Stan Humphries, chief economist for the real-estate website Zillow. “The foreclosure crisis is essentially a giant engine converting owner households into rental households.”
New estimates from Zillow show that median rents rose 3 percent from January 2011 to January 2012 nationally, and 5% in King County. Esmael Adibi, director for Economic Research at Chapman University said that people with damaged credit who enter the rental market must pay a premium, which also is driving up rents.
Additionally, Seattle area vacancies have hit a five-year low. what kind of vacancy rates are we talking about? That’s just under 3% vacancy in multifamily buildings–we haven’t seen vacancies this low since 2007. Altogether, King County currently has a market vacancy rate of 4.1%; this is big news!
The last 5 rental properties we have sold are cash flowing $500-$1000 a month. Rates and values are at all-time lows – making a perfect time to invest in rental properties. Investors can now have up to 8 rental properties through FHA. Don’t miss out on the opportunity to build your retirement and generate serious cash flow.
Do not hesitate to call with any questions or concerns on getting into your next investment.