Did you see this article?
http://realtormag.realtor.org/daily-news/2013/02/14/billionaire-goes-home-buying-spree
If you have been reading my blog or newsletters for the last 2 years, you will recall that I am a huge proponent of investment real estate. I own multiple properties, and I am known for helping investors purchase rental homes. It is one of my fortes.
Right now is probably the best time ever to own rental homes. Like I said, I have been advocating for this fact for years. If you didn't believe me then, maybe you'll believe me now when you see a billionaire making a move like this! And what a move it is. Brilliant. Long term strategy. I hate to use this term but...in this case...it is a CAN'T MISS investment strategy.
Rental property has long been one of the safest investments out there.
The great part about it is this....you can still get decent deals because in a lot of markets, prices haven't jumped a ton yet. Then you ride out the hot rental market for the next few years, and when it's over and the cash flows return to normal levels, you can fix up the place (because inevitably, unless you are extremely lucky, your renters will put some serious wear and tear on the house and you will have to correct that) and sell it for a BIG profit. It is almost like doing a fix and flip, except you cash flow it for years, get to write off the mortgage interest during, and even depreciate the property if you want. If you buy it right, you don't need to worry about the condition of the property now, except for major things like roof, structural, and furnace. Renters are absolutely desperate for a place, they will rent whatever is out there. It doesn't need to be perfect, just liveable. If it is liveable, they will come. And pay a premium for the place.
What I am trying to say is this....BUY the cheap places. Clean em up just enough to get them rented. Rent them out for now. When it makes sense and the resale market peaks, which it is building up to now...do a serious cosmetic clean up and sell it for a big profit!
Trust me, this strategy will work for you!
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