As the number of renters in the United States continues to make gains, many investors are looking to cash flow properties as a way to create steady returns. What previously would have been a time-consuming research project has become an accessible same-day reading assignment. That’s all thanks to the ease with which data about neighborhoods and properties can be accessed.
It takes less time than ever to invest in real estate because there are so many services that facilitate a hands-off approach. These opportunities relieve you of the need to track down properties, weed out bad tenants, and oversee your units so you can focus on reaping the rewards.
By closing the knowledge gap between yourself and seasoned pros, HomeUnion® helps you talk the talk and walk the walk with the best of ‘em. With these 5 insider facts every savvy real estate investor should know you won’t be out of step when it comes to doing the real-estate investment dance.
1). A new “rentership society ” is emerging
Not everyone can afford to buy a home these days.
- Getting a loan is harder.
- Income levels are lagging.
- People have more debt.
- There’s less certainty about the future.
As a result, more single-family units are getting scooped up faster. Investors, both independent and institutional persuasion, are fast to invest in single-family rentals.
2). Cash flow properties help balance risk.
In 2008, countless investors saw their stock dividends dry up in the blink of an eye. Those banking on retirement savings to last them through old age found themselves desperate and in dire straights. Clearly an alternative is needed!
No matter what happens, people need a place to live and work. For this reason, there’s always a demand for real estate. While the stock market is volatile, sometimes making gains and dips as frequently as every hour on the hour, real estate has a low correlation to other types of assets. As a result, the capriciousness of the stock market is less likely to tank your property’s value. This is why professionals use real estate to diversify their portfolios and as a means of becoming more resilient investors.
3). Location, location, location! But not quite how you think.
The best location isn’t necessarily the location you would most like to be in. Instead, it’s ideal to find a place that meets the following criteria.
- Affordable property values with proportionately high rents.
- Ample non-seasonal employment opportunities.
- A high density of Millennials.
- positively trending population movement.
Some markets that meet these criteria include Chattanooga, TN, Chicago, IL, Jacksonville, FL, and San Antonio, TX. As you can tell, these locations are all over the place. That’s because the time-honored tradition of investing in your own neighborhood are no more!
Thanks to modern property management companies, you can invest anywhere in the US. That doesn’t mean your own backyard is off limits as much as it means that we’ve passed the limits of your own backyard. Use the definitive guide to finding investment properties to find the place(s) that are right for you!
Other people’s money: the secret to more properties and more cash flow!
Mortgage rates are very low, which is good news for you!
A consultation with Fannie Mae and Freddie Mac may leave you with a government secured loan! With that loan, you can increase your buying power, grow your returns, and invest in a broad range of properties.
5). Don’t skimp on good property management.
As already mentioned, you can invest all across America thanks to property management companies. Your property manager will secure occupants for all your units. This way you won’t have to worry about conducting background checks, credit checks, employment verifications, or tenancy details to solidify payment ability. Your property manager will make sure your property is repaired before it even needs repairs!
A solid property management company will keep tenant retention high so you never have to worry about lost earnings.
Thanks to easy access to data, today is the best day to invest in real estate. We can get granular enough to find desirable neighborhoods in desirable regions. We can also go in-depth enough with tenant research that we’ll find occupants who are unlikely to delay or skip out on payment. Thanks to cutting-edge investment models, such as HomeUnion®, investors like you can reap the rewards of cash flow entirely hands-free.