Rental/Income Properties are a Great Investment!
Investors have been purchasing residential real estate with the objective of holding and renting for Decades. In the past decade the main goal was to cover the mortgage payment and bills associated to the property with the rental income. The investor would base this investment on anticipated appreciation not on monthly/ annual cash on cash return. A lot of investors have encountered big problems and suffered losses due to the HUGE drop in prices over the last several years.
Foreclosure numbers are at all time highs and values have decreased over 50% and continue to fall. The positive side is Arizona’s strong rental market. The rental market has been on the rise since the bubble pop in 2006. If you take a look at the current market’s home value to rent value ratios it is quite clear that it is time to include rental properties in your portfolio. You can purchase a home for $100,000 to $170,000 today in the right locations with supporting rents between $1200-$1900 per month. These numbers can easily show you a 12-17% cash return on your investment annually. Even if the market declines a few more percent over the next couple of years you still have a strong return coming in.
We all know it’s just a matter of time before this decline stops and values start to go up. When this occurs it will make this already sweet conservative investment even sweeter! Now is the time to take advantage of the depressed market and put your money in a safe controllable investment that will show instant cash returns. Contact an Evo agent to inquire about opportunities available today!