Investing in real estate is a long term commitment. This was not understood by the many investor wanna bes that we saw in the last several years. The idea of buying and flipping in a year or two was never realistic in the Texas market. In some areas this worked, if you were lucky enough to get out before the market crashed. If you did not the chances are good that you are very upside down on your investment properties, and in some cases you may not be able to do anything but take the loss. If this is what happened to you I an truly sorry. Now in Central Texas (Austin/Round Rock) we are looking very good. Our homes are still appreciating at a good positive rate. Now some who bought investment properties in our area and did so by doing $o down you are not in so good of shape. But I have said before what does no down payment and investment have to do with each other. I would say they counter act each other. What we do have is a a very strong rental market due to the fact that buyers today have to have to do more than just pass the fog the mirror test to buy a home. They actually have to qualify credit wise and prove that they have enough income to pay for a home. What a novel idea. It seems like someone has thought of that back in the 60s and 70s, but for some reason it was forgotten. OK I will get off my soap box. With interest rates being as low as they are at this time, it is a great time to invest in long term investments in real estate. With a 20% down payment you would be surprised what the rate of return would be on that 20% in 5 years. This is not rocket science. Just use a 4 % appreciation rate, subtract out 25% vacancy rate, and 10% maintenance and look out, you will be surprised. I do have a excel spread sheet that show this more clearly. Will this work everywhere, no. Will it work in Central Texas, yes. Will I guarantee it, No I could lose my license for that, at least as a Realtor we are made accountable for our actions, unlike banks,mtg lenders, and Wall Street. We have many homes on the market now that the wanabe investors bought and now are trying to sell them. Now is the time for a real investor to buy homes and make money. If any of you out state Realtors have any true investors let me know, I do pay referral fees.
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