The one great thing about this real estate market is we are in the process of making the next generation of Real Estate Mogul millionaires. These are the people that are taking the gamble that the market will recover and they are purchasing these “rock-bottom” priced homes and renting them out.
We have a perfect storm that we will never likely see in my lifetime again. Prices crashing down, all time low interest rates, and super low vacancy rates. This is the unbelievable Tri-Fecta of this market.
Here is a good story from CNN of 5 people taking advantage of this Tri-Fecta across the nation.
Real estate moguls in the making
These real estate investors are buying up properties as fast as they can, taking advantage of rock-bottom prices (and mortgage rates) with the knowledge that the markets have to recover at some point. While they wait, they’re making a pretty nice return on their investments as landlords.
…Never have the pickings been better for Jeffrey Lehman, who has been buying condos, townhouses and single-family homes in South Florida and renting them out for decades.
Lehman just closed on a 1,300-square-foot, three-bedroom foreclosed home in Homestead. The price: just $38,000 — low even by Florida standards. The place sold for $140,000 seven years ago. Post-bubble, Zillow, the online real estate website, estimates its value at about $100,000.
It does need a new roof, however, which Lehman says will cost around $6,000, and he’ll put in new kitchen cabinets for another $1,500.
“I can easily get $1,000 [a month] in rent,” he said. “Everyone says I could get more but I know the economy and I just want to relax and have a good tenant who’s going to pay the rent every month.”
He figures the house will return 20% a year on his investment — after property taxes and other expenses. That’s a Warren Buffet-type return and it doesn’t even include potential appreciation.
If you are interested in learning more about buying investment properties, how to manage them, how to hire out management of them, return on investment and general questions. Please contact me. I can walk you through the pros and cons and help you with ROI and Cap Rate analysis to help you determine if this might be an investment that is right for you. Contact Me
- Real Estate Mogul Aby Rosen Just Bought This Famous Glass House On Long Island (businessinsider.com)
- Distressed Real Estate: Discounts From Market (economistsoutlook.blogs.realtor.org)