Are you considering investing in rental property in the current market? Despite ongoing challenges related to the pandemic, the rental property market has remained relatively stable. According to the National Association of Realtors, rental prices increased by 2.5% in 2020 and are projected to continue to rise in 2021.
However, investors need to be aware of unique considerations and challenges when investing in rental property in the current market. As a commercial loan broker, Starting Gate Financial can offer insights and guidance for evaluating the market, preparing for potential financial challenges, considering property management options, looking into financing options, and doing your research as a rental property investor.
Market analysis is an important factor to consider. According to Zillow, the median rent in the United States was $1,750 in February 2021, up 2.5% from the previous year. Understanding economic indicators, rental prices, and property values can help you make informed decisions. You can also use online tools like Mashvisor and Roofstock to research rental markets and properties.
When it comes to property management, you can choose to manage your rental property yourself or hire a property management company. Depending on your experience and preferences, either option can work. According to a survey by RentScale, property management fees typically range from 8-12% of monthly rent.
Financing is another important consideration. Commercial loans are available to investors, but it’s important to explore your options and find a loan that fits your specific needs and goals. According to the Mortgage Bankers Association, commercial and multifamily mortgage originations in the fourth quarter of 2020 were up 49% from the previous year.
By doing your research and partnering with Starting Gate Financial, you can successfully invest in rental property in the current market and build wealth over time.
