For single family residential houses, the rental boom is Here now!
Over the past year home sales prices have skyrocketed. And it’s not just that prices went up fast, it’s that they went way way up and very very fast. There were a lot of factors at work, factors like low inventory, artificially low interest rates, upsizing with work from home, downsizing with retirements, coming out of the covid backlog, etc. The perfect storm of a sellers market allowed home flippers to make money almost just by looking at a deal.
But now what? Prices are up. Interest rates are up. Inventory is up. Inflation is at record highs! What is the real estate investor to do now? Well that’s easy… Rent of course!
One of the best parts of real estate investing is recurring passive income. We call this Cashflow. There’s a lot to unpack in those last 2 sentences and to sum it up it basically means financial freedom. Yes, that’s right, the magic of finaclal freedom with real estate is through recurring passive income we call cashflow!! We do this through rentals.
But why rentals now? Well that’s easy too. The escalating home sales prices often acts like a magnet and works to pull rent prices up. It is a lagging effect, but often not too far behind.
Pro HINT here — “Rent Pockets!” Contact me on this one! It’s like striking gold!
Across the board rents have increase with home sales prices, and it should be no surprise. With inflation and interest rates ticking up, buyers are leaving the marketplace and going back to the sidelines. And this trend might not stop any time soon. And BOOM! It’s a Rental Boom!
The savvy real estate investors, the educated real estate investors know that now is a huge opportunity to get wealthy.
Are you in the game? Are you making money with real estate?!