I have recently noticed more and more of my past clients are now buying investment homes. How do you assess the situation? Do you see crisis or do you see opportunity?
In the past, when the Charlotte Real Estate market was growing rapidly, Charlotte Home investors were buying investment homes and breaking even on a monthly basis. The reason was rent prices basically were equal to your mortgage payments. Now consider the fact that you can purchase distressed homes at a discount and interest rates are still low! You will now have positive cash flow for your investment property.
How have things changed? Rent has remained a constant. But now, there are homes sold at discounts! Now how can you tell if the "reduced market value" is temporary or a sign of darker times to come?
The fundamentals will dictate future value. Location, location, location. Consider what is important to home owners. What are the monthly fees? What amenities are available? Is the neighborhood kid friendly? How are the property taxes? How are the schools? How is the commute to work? Look through the eyes of the home owner (not just the renter). Keep in mind the rental pool will continue to grow as the short sales and foreclosures work through the system. These unfortunate folks are now renters.
There are some amazing deals in greater Charlotte Real Estate! Keep in mind that great deals do go quickly. Rules have changed dramatically over the past couple of years. You will likely need 20% down plus several months payments in reserves (6 months is often required). Yes, it is more difficult but in truth, you will be in a better place to begin your investing in real estate.
A wise investor knows when it is time to sit on the fence and when to jump in. Rental demand will continue to rise as the foreclosures and short sales work through the economy. The best deals sell quickly. You need to do your homework beforehand. Take to your lender and then give me, Rick Waite a call at 704-770-6559.
