Blog

5 reasons that rental properties are the best investment

Have you ever thought about investing in a rental property? Here are 5 reasons to consider making the investment! I promise you won’t regret it!

1. Rentals allow for greater return

The more you invest the greater return. This is true with anything but especially rental; properties. Say you have a property that is a great location but a little outdated. If you spend some time making those updates plus you already have a great location you could potentially charge a higher rental rate and get more money for your investment.


2. People always need a place to live

Real estate is always fluctuating. However, people always need somewhere to call home. So unlike other trends real-estate is an investment you can always rely on. Another perk of owning a rental property in this day and age is mortgages are becoming increasingly more difficult for the younger generation to be approved for. This generation also enjoys the flexibility of moving around. This means you have a large market of renter for your properties.


3. Rentals have worked for millions before

Perhaps one of the greatest benefits to rental property investing is the proof of concept handed down by millions of successful investors before us. Since the dawn of human civilization, landlords have built wealth by owning and leasing out residential property. Today is no different. According to IRS Statistics of Income data, about 10.6 million taxpayers declared rental income in 2015 for 17.7 million properties.


4. Rentals offer incredible variety


Rental Properties allow you to invest in single family homes, mulit-family properties, apartment buildings, office buildings and more.


5. Rentals are simple and straight forward


With All county managing your properties, you get the luxury of us having to do all the work and you get paid. We will be the middle man between you and your tenants from collecting payments, sending out service orders and just taking calls with any property related questions.

 

Article:  https://www.biggerpockets.com/blog/i-love-rental-properties

Top Drivers of the Rental Property Market

These 10 factors may influence the rental housing market, priced drops, and which cities will be best to invest in.

1• buyer market is young and unable to finance the purchase of a home
2• not enough single detached homes available to buy
3• risks in buying are high with high prices, rising mortgage rates and housing market uncertainty
4• millennials are career-minded and not necessarily willing to buy now
5• millennials/ Gen z are recently financially independent 
6• home and condo prices too high to purchase
7• buyers won’t buy due to mortgage finance restrictions and long term worries over a recession/market crash
8• cost of living rising
9• millennial preference for older urban neighborhoods with walkability
10• immigration into the US is still strong

If rental properties are even a quarter of the $36 Trillion US real estate market, we can say with confidence that it has major economic impact. The growth in rental apartment, rental condos, and home rentals is creating a lot of jobs including property owners, managers, and the kind of extra income many investors need.

The Dallas/ Fort Worth rental property outlook for 2021

 

With the US real estate market managing to thrive during the coronavirus pandemic, many investors are beginning to make plans to enter the market this year.

In this year’s report, the effects of COVID-19 were analyzed among other market factors in order to rank US cities in the Markets to Watch list. Those listed below ranked in the top 10 for overall real estate prospects. 






Dallas/Fort Worth, Texas has been ranked #4 in the nation. Those predicted market trends are listed below.

The Dallas/Fort Worth market has moved up the list from #6 in 2020 to #4 for 2021.

This points to a positive job outlook, with the report estimating that cities like Dallas/Fort Worth will see 28% new jobs from 2019 – 2025. 

A diverse economy and a growing job market definitely earn the Dallas/Fort Worth housing market a spot on the list of the best places to invest in real estate. The location ranked #2 for its local economy.

Those looking to enter the residential market should know that the renter population is high in both locations: 59% for the Dallas real estate market and 44% for the Fort Worth real estate market.

Fort Worth Real Estate Market Statistics:
Median Property Price: $324,337
Price per Square Foot: $152
Price to Rent Ratio: 16
Traditional Rental Income: $1,655
Traditional Cash on Cash Return: 2.7%
Top Fort Worth Neighborhood for Real Estate Investing: Village Creek
Forecasted Real Estate Appreciation for 2021: 7.3%


Dallas Real Estate Market Statistics:
Median Property Price: $490,477
Price per Square Foot: $227
Price to Rent Ratio: 21
Traditional Rental Income: $1,966
Traditional Cash on Cash Return: 1.9%
Top Dallas Neighborhood for Real Estate Investing: Reunion District
Forecasted Real Estate Appreciation for 2021: 6.1%

Other Dallas/Fort Worth Housing Market Rankings for 2021:
#3 for Homebuilding Prospects
#2 for Real Estate Investor Demand
#9 for Development and Redevelopment Opportunities
#2 for Availability of Debt and Equity Capital


This list is based on the PwC’s Emerging Trends in Real Estate 2021: US report. The annual report put out by the PwC and the Urban Land Institute features key data, trends, and insights from over 1,600 real estate experts. https://www.mashvisor.com/blog/best-places-to-invest-in-real-estate-2021/

6 reasons people choose rent instead of buy

1. No Large down payment
When you purchase a home, you often times have large sum of closing costs and down payments. However, when you decided to rent, you typically only have your first month’s rent due as well as your security deposit.

2. More flexibility on where you can live
When you rent you can live basically anywhere! Renters have the choice of living in a townhome near the city, in a family house in the suburbs and anywhere in between.

3. Flexibility to up or down size
Renters also have the choice to up or down size their living accommodations. If a family is renting a large home and suddenly find themselves empty nesters after their current lease, they have the option to down size if they so choose.

4. Fixed rent amount
Need we say more? You have a set rent amount every month. Besides the bills,  you don’t have any extra cost associated with renting.

5. Lower insurance costs
The cost of insurance for homeowners’ verses renters varies drastically. While home owners need to maintain their homeowner’s insurance policy, the equivalent for renters is their renter’s insurance which is much cheaper.

6. Minimal Maintenance Costs or Repair bills
One of the best benefits of renting verses buying is the cost of maintenance repairs. Homeowners tend to have more costly fixes than that of renters.

How to attract more tenants to your rental property

1. Choose the right area for your rental property

Location, Location, Location! This could be in a well-established neighborhood, a popular place in town or an up and coming city! Most people look for neighborhoods with low crime rate, good schools, and ones with access to plenty of stores, restaurants, parks, and other nearby establishments.


2. Upgrade the kitchen and bathroom

The kitchen and bathroom can be a make or break for renters. The reason for this is the kitchen and bathroom are what become outdated most quickly. By adding modern fixtures, it can bring a more modern/ new feel to the home.


3. Invest in curb appeal

The homes exterior is the first thing potential renters will see. This must make a good impression. Sometimes some power washing can help clean up the exterior walls. Depending on the size of the yard, consider investing in greenery in the flower beds or lawn, real or artificial. This can brighten up the exterior and make it look more put together.


4. Fresh paint

One of the easiest changes you can make is adding a fresh coat of paint to the walls. Not only will this brighten up the space, but the smell of paint gives off the illusion that the home is new and well kept.


5. Amenities

Lastly, if you can, add some amenities to your investment property. This could be little things such as outdoor furniture, increased storage options, etc.