I was just thinking about the most important rule for investors. Buy low sell high except right now it might be better to buy low and rent it out because it will be awhile before we can sell high. The number of people who own homes has gone down slightly and there are more renters now. Rents are higher now than they have been for awhile and vacancy rates are lower. Interest rate remain at an all time low. Maybe you don’t want to run out and buy a rental property but if you own property maybe you could hang onto it and rent it our instead of selling it.
I found one little duplex on the market for 89K and it has two units and the owner is currently getting over 19K a year in rent. The owner probably gets some tax deductions too. Something to think about while home prices and interest rates remain low.
I have been telling my investors this for the past year. In Baltimore, there are no quick magical properties that you can buy for 50k and sell the next week or month for 90k. However, I can list several properties currently on the market that investors could get an 8-10% return if they simply rented them out for a few years. I guess some people will always want to dream of getting rich quick.
For the first time in a long time it’s cheaper to buy than to rent in Philadelphia so investors are buying and holding.
good point it is cheaper to buy in much of the country.
Tell me about it. I have a Short sale listed for $149,900. The owners were renting it out for $1750 a month, several hundred less than their mortgage payment. A rental CMA put $1750 about right for the area. A new monthly mortgage payment should be between 900-1300 a month if it settles at listing price.