For those of you who frequent my blog, this blog is going to be a bit different. I usually write my blogs to cover a wide range of rental home owners in an effort to help them in their quest for a successful rental. For this particular blog however, I am going to focus primarily on the rental homes that are in the Antelope Valley in California.
The Antelope Valley consists of several cities which are located fairly close to each other. The two most well-known cities are Palmdale and Lancaster. Palmdale is about an hour or so north of the Los Angeles basin and Lancaster is about 15 minutes north of Palmdale. One distiction that the Antelope Valley is unfortunate enough to have is that of one of the worst hit areas of the state with the current foreclosure mess. As a result however, it has never been a better time to rent out or purchase investment homes!
Current trends in the local rental market show a steady increase in the amount of renters looking for a place to call home. Many of these renters are prior home owners who had to let their homes go back to the bank after their ballooning payments got out of hand. Others are people who would have qualified for a home purchase but are now unable to do so due to the recent restrictions in the lending industry. Still others are people who are currently renting in appartments and would like to trade up to a house. All of these groups are beginning to pile up and create a rental housing demand that we have not seen in years! Obviously, this benefits those who own rental homes, but it is also a great benefit to those that are thinking about PURCHASING a rental home.
The increase in renters has caused our available supply of rental homes to drop surprisingly. Of course, the laws of supply and demand come into play and rental rates begin to climb. It is now quite possible to purchase a home that will rent out for more money each month than you will have to pay in mortgage payments, property tax, etc. Most people listen to and base their decisions solely on what the media has to say about the market. The smart investors however, are those who are buying when others are not! That is when the great deals are found. Of course, we do recommend that you at least check with a local reputable property manager to see what a home will rent for BEFORE you buy it. We have gotten calls from several people recently who were told that they were getting a "great deal" only to find that the great deal was in favor of the selling party. Please take the time to talk to someone who knows.
Your Realtor may tell you that your 1,000 sq. ft. condo will rent for $10,000 per month, but just because they are involved in real estate, that doesn't mean that they are qualified to make judgements on the rental market. Dentists and brain surgeons are both medical professionals, but I wouldn't want my dentist attacking my brain with a water pick! Would you?
The Antelope Valley is going through a time of change, and all signs show that it will be a change for the better!!
For more information on how to become involved in real estate investing or for other solutions to today's rental market, please check out our website by clicking here!