8 insider tips to get rich in real estate
While areas that command high rents are attractive initially, when rental rates exceed 30% of the neighborhood’s median income, the real estate investment market could head to unsustainable heights, Villacorta said.
“Depending on the investment horizon, a higher proportion of income needed for rents could be a risk and a reward,” he said. “In the near term, surging rental rates indicate that there is a strong demand for potentially limited inventory, which portends higher returns for the investor. In the long term, however, these low-supply markets are prime targets for larger multi-family construction or increased production of single-family homes. “
Another option is to invest in a multi-family property up front, said Sep Niakan, owner and managing broker at HB Roswell Realty and founder of condo listing site CondoBlackBook.com.
“It’s always easier to manage both the property and multiple tenants on one property than multiple tenants across multiple properties,” Niakan said. “That said, another way to simplify your rental investment is to buy a condo, where you will have to spend a lot less time maintaining the property than a detached property.”
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