Unsure of how the real estate market will respond in the coming months and years to all the economic chaos? My advice to to my investor clients and those who are scared of the stock market is to buy investment rental property and hold it until the economy shows signs of a revival.
As our real estate market returns to the traditional loan practices of requiring substantial down payments in order to buy a home, the need for rental properties will increase dramatically, not to mention the length of leases. The best purchases will be homes that can be leased out for between $700 and $1200 a month and provide positive cash flow to the investor. Most folks would rather live in a house with a private yard than in an apartment. Most good apartments lease out on average between $700 and $1200 per month. Take advantage of the abundance of repossessed homes. Be prepared to make some repairs on these homes.
My borker and I specialize in repossessed homes here in Northwest Louisiana, with the majority of the homes we list and sell in Caddo and Bossier Parishes. We also manage rental properties for our clients.
There will always be a need for housing and that is what makes rental property a great investment. Especially during these times of layoffs and business bankruptcies, many homeowners may find themselves becoming tenants. So stick with affordable housing for the best outcome, stay witthin the ranges that the middle class working citizen can afford.