Yes, in my professional opinion, now is the time. I’ve helped several investors buy rental properties this year. With interest rates in the 3.5% range for investors, and vacancy rates as low as they are, investing in real estate has caught the attention of our clients. Here’s what you might think about:
1) If you portfolio is all stocks/bonds you might consider diversifying through real estate.
2) If you are handy and like to spend your time on home improvements you might be able to earn extra equity on an investment property.
3) In some cases, with a 20 to 50% down payment you can get a 15 year mortgage and the rent will most likely cover your mortgage payment. In 15 years you will have a property 100% paid for by your tenant(s).
4) Hopefully the property will appreciate over time, the rent will increase, and the property will cash flow positively.
5) Townhomes have a nice appeal because they are usually maintenance free on the exterior, tend to appreciate more than condos, and are a little bigger.
6) Look for properties in good school districts. These properties tend to hold their value and always be in demand for people looking to rent.
7) Talk to your accountant and see if there are tax advantages because there usually are.
8) Count on the property needing some fix up at some time. If you have good tenants they may not be too hard on the property.
Thanks, I’m happy to help with leases, security deposit agreements, and I can refer you to good property managers. Call me at 720.203.9624 if you would like to talk about this further. You can always look us up online at www.BevGrothProperties.com