America was once known as the land of opportunity, attracting settlers from all over the globe to establish their very own homesteads on fertile lands. That dream is still alive today, and there is plenty of money to be made by those willing to get their hands dirty. The Association of Real Estate License Law Officials (ARELLO) estimates that there are currently 2 million active real estate licenses in the U.S. with those individuals renting out over 115 million units across the nation. Buying, selling, and maintaining rental homes is a full time job for many Americans already: here are some tips on how to invest in rental homes.
Since the collapse of the housing market in the mid-2000s, the market has been on a steady up-trend. With a growing economy, competitive mortgage rates, affordable prices, and increasing consumer demand, housing is expected to be on a continuous trajectory for the remainder of 2015. Investing in rental property is a wise idea according to Forbes, which estimates that nearly 1.5 million new housing units will need to be built every year to accommodate increasing populations. Ideal locations like beach property only increases the potential for profits.
A Market for Rental Homes
Rental homes are in such high demand due to the reason for relocation. Nearly 24% of recent home buyers simply wanted to own a home, but 9% of buyers had to find a place to live due to work relocation and 8% wanted to relocate to a better area. Renting a home, unlike buying one, is a less extreme commitment as you might not like the home or location after some time. We are going through what analysts call a buyer’s market, meaning that many people don’t want to be stuck with a home that they cannot quickly sell off. By understanding the reasoning behind rental properties you are already on your first step towards learning how to invest in rental homes.