Income Properties Are Trending

If the idea of putting your money into real estate, maybe even some eye-catching paint and siding, gets you excited, then you're in good company. Investing in real estate has been a favorite way for Americans to grow their wealth. According to Census data, over 70% of single-family rental properties are currently owned by individual investors, not corporations.

Moreover, Bankrate surveys spanning a decade have consistently shown that Americans prefer real estate for long-term wealth building over other investments. The latest survey highlights the strong return on investment it offers, especially for those willing to hold onto a property over time. It's also a popular hedge against inflation, as rental income and property values tend to rise with overall prices.

Now, as rising interest rates sideline some homebuyers, a new wave of "mom and pop" investors is eyeing the growing rental market as a potential goldmine. Interest in buying a home for both living in and renting out is also on the rise, especially for budget-conscious buyers looking to offset mortgage payments.

Wondering if real estate investment is right for you? Here are three signs it could be:

1. You're a Homebuyer Looking to Offset the Mortgage: If you want a creative way to buy a home without overspending, "house hacking" might be your answer. It involves buying a home you'll live in while renting out part of it. House hacking is easier to get into than traditional real estate investing, with lower credit score and down payment requirements.

2. You're an Investor Seeking Steady Income: If you want an additional income stream and long-term stability, a dedicated long-term rental property might suit you. Positive cash flow, where rent exceeds expenses, can ensure you earn money each month even if property values take time to grow.

3. You're an Experienced Investor Aiming for Maximum Returns: If you're experienced and open to some uncertainty, converting a property into a short-term vacation rental can be lucrative. However, it requires marketing skills and business acumen. Be ready to learn or hire a property manager.

Before diving in, ask yourself if you're ready to be a landlord, if you can afford the investment, and if you've found the right income property. We're here to help you make the most of your real estate investment, whether you're a beginner or seasoned pro. Contact us for a consultation to discuss your goals and budget.