The market speaks, and it will help you to understand what the current demand is. The rental market is definitely seeing an upswing, and this could be caused by the millennial generation .”
Get all the Facts Before You Buy
but if it was priced under this amount, I would maintain a margin and keep it as a rental. One important factor that investors like about buy-and-holds is their potential to appreciate over time. The market will determine the value of your investment based on its location and the timing, but investors have the option of making improvements to the property or upgrading certain features and amenities to achieve forced appreciation. Investments are made on cap rates, which is your net income of the property divided by the cost of the property. As a buyer, I want a higher cap rate (7 to 8 percent), with a lower percentage (2 percent) of appreciation later. For some investors, they will want the opposite, but I find that this strategy brings a more current return on my capital without relying on the possibility that my property may or may not appreciate in value down the road.
upswing, and this could be caused by the millennial generation. Students who are either finishing college or have recently graduated are looking at a pathway lined with debt and loans to pay off. They can’t necessarily afford to save for the down payment to purchase a home, so renting is a better option. After living in dorms or apartments for the last four years, some may want to get married, settle down and have kids. They’ll need the space and potential a house can provide for the immediate future. And as an added bonus, if the rental market ever gets weak, you can always sell the property as a fix-and-flip, so your buy- and-hold investment will continue to be a profitable asset for your overall portfolio. Your decision to rehab a buy-and-hold property may differ from a fix-and-flip. When you fix and flip, you approach the remodeling process with the mindset that the buyer is coming with their luggage, ready to move into a turnkey home, with no renovation required. Should I Remodel or Not?
Criminal & Sex Offenders Former Local Drug Labs Nearby Hazardous Sites Quality of Schools Property / Loan Information
Is the Market Right for Renting?
The market speaks, and it will help you to understand what the current demand is. The rental market is definitely seeing an
Get My Free Report
ATTOM Data Solutions • P10
Made with FlippingBook Online newsletter