Hard Money Facts

Urban Revival Spurs Rental Property Investment Opportunities

Posted by Residential Capital Partners on May 21, 2021 9:48:14 PM

The pandemic has changed our lives and the economy in major ways. For many Americans, it has meant making the switch from working at the office to working from home. And it looks like working from home will continue permanently for many workers, even though some offices have reopened. With the flexibility of working from home, many Americans have opted to change where they call home. You may even be reading this from the comfort of your own home or local coffee shop!

With this new flexibility, some Americans have opted for a new view from their home office window. They are heading for both rural and suburban areas. We’ve witnessed younger households swap city life for the suburbs, while elderly Americans have hurried the decision to relocate to their retirement destination. Others still, have found refuge in country living. So, what’s left to buy, rent, fix, or flip?

 

To help you on your journey from rehab to rental, download the free Investment Rental Property Neighborhood Checklist.

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How Can Single-Family Rental Property Investors Thrive in the Current Market?

All this has meant a hefty surge in demand for suburban single-family homes, retirement locales, vacation homes and investment properties. And while prices of homes in those markets have skyrocketed, both seasoned and first-time rental property and/or fix-and-flip home investors would be wise not to overlook other options with big potential. The flip side of this current real estate market is that with home prices spiking, little inventory, and high construction costs, an urban buy-to-rent property might be your next best investment opportunity.

Even as the talk is still churning about the swelling suburbs, it’s time to take a second look at urban areas. Urban areas have shown a growing increase in both revitalization and investment. Recent real estate market reports  also indicate that this urban renewal and resurgence began in the spring and should swell well into summer.

What conditions have created this opportunity for the buy-to-rent investment? There are two factors at play: First, an increasing number of young and would-be first-time home buyers are being priced out of the suburban markets where they find themselves looking for a home. Second, many of the most urban areas have been negatively impacted by this suburban “flight to quality." These two factors could create some urban buying opportunities for the single-family rental investor as the undertow brings the urban dweller back to the city in search of a rental home.

The opportunity for buy-to-rent is here. And whether you are new or a seasoned investor, you won’t want to go into new territory without the right partner. That’s where Residential Capital Partners comes in. We can help you decide if a buy-to-rent investment is right for you.

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Topics: Rental Property Investment, House Flipping Market Insights

The Unexpected Opportunity for Rental Investors Today

Posted by Residential Capital Partners on Sep 16, 2020 7:47:02 PM

If you’re not already invested in suburban rental properties, now is the time to start.

The demand for suburban single-family rental homes has continued to surge since the COVID-19 pandemic began. City-dwellers are fleeing their multi-family units for more social-distancing-friendly, single-story homes. For example: after the pandemic hit New York City, an estimated 5% of the population up and left town and new leases in Manhattan dropped by 60% in May. To top it off, many families that would usually buy a home are opting to rent a home. A study from OJO Labs reported that 80% of homebuyers have postponed or stopped their housing search – giving rental investors the opportunity to gain new tenants.

This has opened up the opportunity for landlords to raise their rent. Real estate data analytics company CoreLogic found that rent for single-family rental homes rose by 1.7% in May alone, and rent for the cheapest single-family rental home rose by 2.8% across the board.

If you’re looking to take advantage of this opportunity and diversify your portfolio with single-family rental investment properties, here’s everything you should know to get more bang for your buck.

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Topics: Rental Property Investment, House Flipping Market Insights

How to Market Rental Properties

Posted by Residential Capital Partners on Mar 11, 2020 11:39:52 AM

Now that you’ve used fix and flip financing to renovate your most recent rental property, it’s time to put it on the market.

The average renter tours nearly three properties over 2.5 months before making a decision, according to Zillow’s 2019 Consumer Housing Trends Report. Don’t let an empty rental property cost you even more money on your investment property loan.

Having a plan to find reliable tenants is as important as securing funding for your investment property. Use these five marketing tactics to catch the attention of high-quality renters, so you can start getting a return on your investment immediately after rehabbing your rental property.

1. Take Professional-Grade Photos. 

This is non-negotiable. Why? A listing without photos is too easy to ignore. Plus, listings with high-quality images get 94% more views, according to QuickSprout. Also, intriguing photos could increase the rental price of your fix and flip between 1-7%, according to a Redfin study examining the impact high-quality photos had on house prices.

If you don’t have the time or budget to work with a professional photographer, consider a DIY approach. Smartphone cameras have come a long way — but you need to know how to use it.

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Topics: How to Fix & Flip, Rental Property Investment

Investing in Rental Property for Beginners

Posted by Residential Capital Partners on Feb 18, 2020 5:23:49 PM

For many real estate investors, rental properties deliver a dream come true: passive income. Done right, your rental property will produce mailbox money. Your tenants pay rent, you provide maintenance here and there and your property appreciates while you enjoy the financial security of a cash-flowing asset. Even more, you can have pride in knowing you put your money to work for you.

But, to do it right, you’re going to need to do your homework and watch out for common flipping mistakes so you don’t fall victim to a bad rental property investment. Here are the 4 most important things to consider when investing in rental properties:

1. Invest in Neighborhoods You Understand

Warren Buffet famously proclaimed, “I only invest in things I understand.” The same rule applies to the single-family rehab and rental business: invest in places you know and understand. You’ll be familiar with details others might overlook, such as the rumored expansion of a large corporation nearby, or the addition of an upscale grocery store around the corner. How walkable is the area? What is the school district like? Is there a college nearby?

For help on your journey from rehab to rental, download this free investment rental property neighborhood checklist
DOWNLOAD FREE CHECKLIST

 

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Topics: Fix-and-Flip Financing Tips, Rental Property Investment