Contrary to popular opinion, a recession is actually the BEST time to invest in revenue properties. Why? Regardless of market conditions people always need a place to live, and with today’s lower prices and near historical low interest rates, you’ve got the perfect money-making opportunity!
The first thing to keep in mind is that real estate in a recession is a long-term investment, as opposed to the short-term “flipping” of boom times. Plan on keeping the property for 2-5 years and watching its value grow steadily. Be sure it is in an area where people want to live and accessible to amenities like schools, shops and transit. Don’t buy the most expensive home on a modest street; instead buy a modest home on an expensive street. This will make your property more desirable to a greater number of tenants, thus, they’ll be willing pay higher rents and you’re more likely to have positive cash flow after expenses.
The key to a successful revenue property investment is making sure the numbers work. As your mortgage advisor, I can provide no-charge advice and assistance. I may be able to access the equity in your current home and/or arrange affordable financing through my stable of specialized lenders. By keeping your interest costs and payments low, we can help ensure that your rent will cover the mortgage. Talk to me today and develop your property investment plan.