Okay... the market for flipping homes is taking a turn for the worse due to all the sub-prime issues and you're focusing on another niche... being a landlord. With all those sub-prime buyers not being able to buy, they're having to lease so there's lots of demand for homes to rent.
So, how do you take advantage of this?
An interesting way to get into the property investment game is to buy yourself a new home. What? Buy myself a new home? Yup. And lease out your existing home or apartment or town-home.
What are the benefits to this approach?:
1. You get to go shopping for a new home!!! That's exciting... you can upgrade to a newer home or a smaller or bigger home, whatever suits your current needs!
2. You know the investment home you're going to lease out as you've lived in it for years yourself! This is crucial. Most new investors step into so many unknowns when they buy their first investment property as they're not normally of the same quality that they live in themselves. The costs tend to be unwelcome surprises that are discovered after you've already closed on the deal. Too late know!
3. The new home that you'll be buying for yourself will be newer and will have less issues and you'll be very careful with this purchase as you're going to live in it yourself so you automatically reduce the risks you'll be prepared to take on.
4. You should be able to obtain a better quality tenant... or, at least, one from a similar social status as yourself as they'll be leasing the home you're vacating!! This also reduces risk as you're dealing with a social sphere that you understand much better.
What are the benefits of being a landlord? The three main ones are:
1. You gain from the asset appreciation of the home/s you're leasing out.
2. You gain from an appreciating income stream from your tenants. Small annual rent increases.
3. You gain from the equity building up in the home as your tenant pays down the note.
If you'd like to discuss your own situation and how you might approach a project like this and how much you might be able to lease your home for, please give me a call. We could meet for coffee somewhere (my treat!) and discuss your options.
Lance - CEO, The Oscar Group, a Keller Williams team
www.thewoodlands-houses.com
832-483 8655
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