As we see the market starting to slow down on the residential side of things, people start looking for ways to increase their investment income in other areas of real estate. As the U.S. is seeing some of the largest historical increases in residential tenants, we can all see why. One of the first questions to ask yourself as a current owner, is, would you purchase your property right now and consider it a GREAT investment, and there are no other alternatives that might give a better return? If your answer is anything except, “Absolutely!”, then it might be time to move on. But before we dive into that, let’s look as to why it is a phenomenal time to be a multi-family landlord.
For starters, since 2007 the number of rental households has grown by 25%. To give you an idea of how large that is, there are now well over 23.5 million people currently in the U.S. that earn income from rental properties. What is even more enticing is the fact that landlords typically earn close to 45% more income than those who don’t own any rental properties. That is a massive difference! With over 116 million renters in the U.S., you can see why it can be lucrative as a landlord. So, if you are considering becoming a landlord, I would personally say there is no better time than now.
Now if you are a current owner and you couldn’t answer the above question with an absolute yes, it might be time to move on to your next investment. A lot of owners tend to get very comfortable with their property but if you want to be a smart investor, you need to be on top of your game and know when it’s time move on. First, ask yourself how confident you are that you are currently netting the most on your investment property? Then, reach out to a broker to see how much similar investments are going for in your area and what their returns are. Chances are, you are going to be quite surprised! Lastly, start looking towards the future of your next investment. One thing we know for sure in Real Estate, is that you cannot get comfortable if you want to take advantage of all the advantages that investing in real estate offers… always continue growing!
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