With the small number of rental units available in the Boise area and an increasing of demand due to the number of homeowners loosing their homes, the inevitability of increasing rents are looming. Throw in the fact that Uhaul just published their annual survey of migrations putting Boise Idaho second highest on their list of Growth Cities and you have conditions ripe for investment property owners.
These phenomenons are creating an increase in demand for rental housing in and around Boise. Currently, because of 3 years of little to no new multi family property construction, there are not enough rental vacancies to adequately respond to the increase in need. The result will be an increase in costs for renting and an increase in income for property owners.
Boise has been hit hard by foreclosures over the last several years and has ranked high on the lists of states hit hardest by the real estate crisis. The Boise real estate market currently has an abundance of distressed properties for sale at or near $45,000 per unit. With rents averaging $550-$650 per unit, it is not difficult for investors to maintain a positive cash flow, and a healthy Return on Investment (ROI). Interest rates for investment properties have hovered around 5.375% over the last year or so making Boise area multi family income property a very attractive investment again!