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Investment Property Tips For Today's Market

Investment Property Tips For Today's Market

Have you been thinking about adding rental properties to your investment portfolio? We've talked before about the benefits of property management, but never has there been a better, or more urgent, time to jump into the pool. According to a recent article published by Inman, the increased demand for single-family rental homes isn't keeping up with the current supply. As a result, we could be looking at a 10 year supply shortage. We've seen this shift in our own market over the last year. Here are some ways you can take advantage of the current market and use it to invest in your future:

  • Use Your Equity

According to Stellar MLS statistics, August 2020 home prices in Tampa Bay are up 13% from August of 2019. Depending on how long you've owned your home, you might have some great equity. Taking out a Home Equity Line Of Credit, or HELOC, can help provide down payment assistance for your investment property. Talk to your Mortgage Broker to see if this is an option for you.

  • Refi Your Mortgage

Rates are at historic lows. Refinancing your current loan can free up money each month to apply toward a new investment property, pay off existing debt, or add to your retirement account. Taking your 4.5% rate to 2.95% on a $300,000 loan could save you on average $300-400 each month. If you have to move, consider refinancing your loan and converting your home into an investment property instead of selling. 

  • Start Now

Rates are so low, it's like free money! Listing inventory is also low, and we're seeing competition among buyers. If the demand continues to outpace supply, we could continue to see prices increase. If you find a great investment property at the right price today, buy it! You'll kick yourself later if you delay and the market prices you out of that home in 6 months.

  • Professionals Are Worth Their Weight In Gold

Today's market is fast-paced and constantly changing. You want to make sure you have people working for you that are on top of those changes and can help you pivot when needed. A Mortgage Broker, REALTOR, and Property Manager are three of the most important people to have in your corner. Your Mortgage Broker will make sure you're getting the best possible loan so you aren't paying more than you need to. Your REALTOR can help you narrow down your search to ideal rental properties and negotiate contracts when you find one. They work with tenants on a daily basis and know what today's renters are looking for in a home. Lastly, your Property Manager is going to be instrumental in ensuring your new property is protected for the long-term. From high-level tenant screening, routine inspections, and ensuring your rental rate matches the market, your Property Manager should be as invested as you in maintaining your asset.

 

At Eaton Realty, we've developed a true concierge investment system geared to guiding your success. Our real estate and property management teams work closely together to stay on top of current market trends. If you find a home that needs a refresh, but the price is right, our project management solution will handle those details for you. Want to learn more? Speak to a member of our team today and let's outline a plan to get you where you want to be. 

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