INVESTMENT STRATEGY
RENTAL PROPTERTIES
SPONSORED CONTENT
9 Do’s and Don’ts for Going the Distance with Rental Property
IN A CHANGING REAL ESTATE LANDSCAPE, BUYING TO LEASE MAY BE YOUR NEXT BIG MOVE.
by Susan Naftulin
n 2022, real estate investors are facing a very different mar-
I
ket than they did in 2020. Where fix- and-flip properties were an appeal - ing draw two years ago, the outlook has changed. According to ATTOM Data, prof- it margins for real estate shrank to 33.5% in late 2021, which is the largest dip seen since 2009. Although home prices haven’t dropped, several factors have contributed to the chal- lenge of making a profit, including labor shortages, supply chain issues, inflation’s impact on the cost of mate - rials, and an increasingly competitive sector. Experts predict values will rise more slowly in 2022, supply chain and labor issues will continue to have an impact, and markets will continue to be saturated with individual investors as well as institutional buyers. All of this has given investors more incentive to hold on to properties for a longer time. “We speak with real estate investors every day, and many that were focusing on fix-flip exclusive - ly have since shifted toward a mix of shorter-term investments and longer-term rental properties,” said John Santilli, chief revenue officer at Rehab Financial Group. “They benefit not only from diversifying their port- folios but also from moving with the trends in the marketplace.”
30 | think realty magazine :: march – april 2022
Made with FlippingBook Online newsletter