Kevin Ortner, CEO of Renters Warehouse, who manages over 10,000 rental properties shares this tip on why right now is such a great time to buy rental properties. Check out this Expert Tip on FlipNerd.com!
Mike: Hey, it’s Mike Hambright from FlipNerd.com. I have a quick Expert Tip to share with you from Kevin Ortner of Renters Warehouse, who is going to share a tip on why now is a great time to buy rental properties.
This Expert Tip is sponsored by RealtyMogul.com, B2R Finance, and AceBusinessFunding.com.
Kevin: We’re in an exciting time. Right now is a great time to either stay in the investment property game, or get into it either for the first time or in a bigger way. I’ve been talking to tons and tons of people over the last couple months of really we’re in a perfect storm of why now is a great time for a couple reasons. One, we’ve seen tons of reports come out. Home ownership rates in the United States are at an all-time 50 year low. The past 50 years haven’t been this low, and so we’re really starting to see us turn into what I like to call a renter nation.
And we have more people who want to rent properties than ever before. And what that means for us is supply is limited, demand is high. We’re seeing rental prices increase all throughout the country. So it’s a great time to get in for that reason. Someone’s got to fulfill that demand. What we’re seeing is people put off buying a home till well into their 30s now. It’s just not the same as it used to be.
And so we find a great pool of tenants, a great pool of renters who want to get into your property. But on top of that mortgage interest rates are still at an all-time low, so money’s cheap. At the end of the day, real estate prices are still actually fairly inexpensive. They’re not nearly to the highs in most cities across the country that they were previously, so you can get in for a great price to a property.
You can get great financing on that property, and at the end of the day that’s where all the magic is going to come together. You’re going to see that great appreciation. You’re going to keep fixed low payments. Rents are on the rise, so your monthly cash flow is going to increase every year, and you can continue to build that pool of investment portfolios.
Ultimately, what I teach people to do it for is to, when retirement comes, I have 5, 10, 15 properties paid off that I’m able to collect rental income from, and right now couldn’t be a better time to jump into the game.
Mike: We’d like to thank Specialized IRA Services, National Real Estate Insurance Group, and virtualstaffnow.com.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.