It’s a great time to invest in real estate. Homes cost less, but rental prices are up and still rising. Savings and CD interest rates are the lowest in years, and the stock market is in an iffy position. It could even suffer a second dip. So where can you invest your money and get a decent return? Consider buying a home and renting it out. In the United States, the average rent is at its highest level in history and going up every year.
With most non –occupied homes, normally there is a 20% down payment requirement. In today’s real estate market, you can find houses below $100,000. For example, let’s look at this home in Tacoma, listed for $58,500. Your down payment would be $11,700. At 5.5% interest, you’re monthly payment for principle and interest is $66, property taxes approximately $167 and insurance approximately $100. The estimated grand total for this home would be $333.00 per month. This home could rent for at least $750/month. Providing a monthly income of about $417/month. Looking at this picture, there may be some fixing required on this house – replace a window. You can request the seller to conduct repairs or use the repairs as a negotiation point to lower the price. Remember every thing is negotiable in a real estate transaction.
What if you don’t have a lot of money for a down payment, but want to start investing in real estate? You can purchase invest investment property as owner occupied by purchasing a duplex, tri-plex or 4-plex. With these types of properties, you are able to go as low as zero down with a VA loan or 3.5% with an FHA or FHA 203K Rehab loan. Move into this property and have your tenants pay your mortgage!
They say hindsight is 20/20. If I knew then what I know now, I would have purchased property, owner occupied every few years to build my real estate portfolio. My first house would have been paid off now and I would be receiving between $800-900 rent on that house. Unfortunately, my Realtor at the time discouraged me from it. My goal is to provide buyers with options. I also plan on educating and encouraging my children to invest in real estate.
While being a landlord is not as easy as signing on the dotted line, for many people it is a great opportunity to increase their net worth and their monthly income. If you would like more ideas about real estate investing, let’s talk
*Disclaimer: Loan obtainment is subject to buyer’s credit score, income and expenses. Interest rates subject to change. Rent is an estimate only and subject to location and condition. Remember: Real Estate is a long term investment. This is NOT day trading.