Investors – Purchase And Rent Out Family Homes!!!


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As more homes get foreclosed, the real estate market continues to experience a disproportionate level of supply over demand.  The problem is exacerbated by the near impossibility of previously foreclosed homeowners to qualify for new mortgages, the reluctance of new workers joining the labor force to buy homes, preferring to rent as they anticipate further drops in prices, and the general tightening of credit by lending institutions.  With fewer people owning homes and more people renting, the upward pressure on rents becomes more acute.  More renters and more empty houses can only imply that the opportunities for purchasing family homes to be used as rentals have surely never been better.

Purchasing family homes for the purpose of renting can be a little trickier than it seems.  For one thing, the total cost of owning a house includes not just the mortgage payment but maintenance costs, property taxes, trash collection fees, utilities, and in cases where they apply, homeowner’s association fees.  If the monthly take in amount cannot cover the monthly expenditures, the investment is definitely not worth it.

To counter this potential setback, an investor considering purchasing family homes for renting should be sure to only buy homes that can be bought at discounts as a means of ensuring the lowest possible mortgage payments.  Short sales, cash sales and foreclosures would make for the best candidates.  The investor must however be aware that foreclosures and in many cases short sales, frequently need some rehabbing.  To keep costs down, seriously dilapidated homes should be avoided.  The investor should take the pains to do a lot of research in order to find the best houses for the least amount of money.

Location is extremely important when shopping for foreclosed family homes.  A lot of foreclosed homes would be located in high crime rate areas.  It wouldn’t make much sense buying in such neighborhoods because it may be difficult to find renters willing to move in.  The good news is that foreclosed homes can also be located in fairly safe and desirable neighborhoods.  It may take some looking around to find them.  Other factors besides crime rates like quality of school district, proximity to busy thoroughfares and highways, proximity to environmentally hazardous facilities, or other factors, should be weighed.  The direction in which property values are fairing may not be of that much concern since the primary goal in this case is to earn income from renting and not from reselling.

If the roadblocks can be overcome, purchasing family homes and renting them out to the public, is a potentially lucrative proposition.  The investor needs to be well informed about the market, plan meticulously, take special heed about location, and keep down costs by buying at discounts.  It may be necessary to team up with other investors as a partnership to reduce personal risk in the venture.  Since there is a lot of expert knowledge required at the buying end of the business, forming a long-term relationship with a trusted Realtor may prove indispensable.

Asking questions with these few tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

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