There's been a lot of publicity about improving markets, higher home prices, and even bid wars in some areas. However, for the most part those bid wars are in a very tight price range band and the competition there isn't being felt in most of the rest of the market.
It's weak, even if we can call it a recovery at all. There is still a large hole which the first time buyers used to fill. Just tracking prices isn't working like it has in past markets. This is a new situation, and old statistical models may be misleading.
Knowing what a rental property investor will pay for the house in rent-ready condition, you have to work backward through the cost to rehab, and then you have to get the price you need to make it work.
Everyone and their mother are chasing investment properties in D.C. because they finally got the memo from 2010 that D.C. rentals are a great investment. Let me be blunt: Unless you already purchased property when prices were lower, that ship has sailed.
More than ever, I get asked by my friends, family, and clients to find them a "good deal." Whether it's their first home or 5th investment property, everyone wants a good deal. Usually, my question is: "what do you consider a good deal?"
It's someone who actually looks forward to the beginning of the month when the rent checks start coming in. It's someone who runs a tight ship with systems that can handle the big waves that are bound to come.
There are two very different ways in which market analysts predict Boomers will influence housing markets over the next decade. Let's take a look at those two opposites and see how each can change the way real estate investors approach their markets.
Unless you've just recently been rescued from decades stranded on a deserted island, you've heard of someone buying, fixing and flipping single family homes. It has long been the staple method for the everyday person to make money in real estate.