I was recently talking with a lady that is focusing on doing rehab flips in California. The real estate market where she lives is very slow, there are an unusually high number of properties sitting on the market for sale and prices have come down dramatically. She is confident she can buy properties at a good price but is not so confident she will be able to sell them in the current market. Renting properties historically hasn’t been an option in her area because rents have not kept up with the price appreciation.
As we started running through the numbers on some deals, she started to see that the properties now could potentially be good rental units. In my opinion, she now has the best of both worlds. She is going to be able to buy properties far below market value, rent them out with a positive cash flow and have huge upside when the market turns around and prices start going back up.
Houses in many markets are “on sale� (not for sale, “on sale�) and buying low and renting and then riding the market back up can be a very profitable strategy.
Posted by Carter Brown
No comments yet.