“Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors…investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation’s housing system. With a statement like that, I think, can there ever be a better time to pursue owning rental investment property than right now?
Since investment property held by real estate investor’s account for 22% of all real estate transactions, and with the amount of housing available, including foreclosed properties, there hasn’t been a better time to own or expand your portfolio of properties. Whether you are looking to upgrade your home, purchase a vacation home or acquire rental units, 2009 could be the year you have been waiting for. With decreased values and a wide variety of real estate available, it’s no wonder why anyone with any available cash is not seeking out investment properties.
An option to consider when purchasing residential investment properties is to search for those properties located within the inner-city. Most often inner city homes are more cost effective when compared to the suburban homes available. Inner-city homes offer cheaper prices, more character and are as abundant as the suburban sprawl homes. Good investors visualize what a house can be and not what it is, when considering a purchase. Many people opt for the multi-family properties because of the potential for profit over single family properties. Normally multi-family homes are more profitable since more rent can be collected per square foot than single family homes. Consider the profits on 2 single family homes at 1,000sf each vs a 2,000 sf home. Odds are both 1000sf homes won't be vacant as much as the single 2,000sf home, therefore, profits increase.
Above all, the old adage holds true for investment property as it does for your primary residence, location…location…location. So make sure where you buy today will still be a desirable place for as long as you plan on owning the property.