Savvy investors are taking advantage of changing markets with new techniques and making an incredible profit. So what is going on in the real estate investing sector and what trends are producing the highest yields?
Whether it’s a buyer’s or seller’s market depends on your particular location. Perhaps even more importantly, it depends on which cycle the area is currently in. However, one thing most experts can agree on is that it is decidedly a ‘landlord’s market,’ especially for multifamily property owners.
Demand for rental housing is high, probably with more renters than we’ve ever experienced before. Those currently living in a rental situation are expected to be doing so for a long time, as prices remain high and they are unable to save up for a down payment.
Rents will continue heading up; increasing yields and total returns over time, as well as building equity in blossoming property values.
At the same time, low vacancy rates mean landlords get to take their pick of renters, and often set their own terms. With this sort of leverage, landlords may increase returns and preserve their investment properties. Having the choice of which tenant to entertain will most likely reduce unexpected costs, making the whole process easier and more lucrative.
This means it is a great time to invest in rental property, a trend that is gaining more traction in certain regions. Yet, it’s also a great time to flip rental properties to buy and hold investors. Being a landlord may not be for everyone, but that doesn’t mean that all real estate investing pros can’t benefit from this trend.
There is more short and medium term money in the market than ever for those that want to wholesale fix, or improve and flip single family rentals and multifamily apartment buildings. And with so much demand for real estate, it shouldn’t be too hard to find an end buyer to resell them to.