Even as the housing market surges back across the country, there is still a solid chunk of Americans who are wary to return to the housing market. While house flippers are having a heyday, particularly in the California marketplace, the portion of the country that is choosing apartments over houses is creating a different type of investment opportunity for smart property investors.
New statistics out of the U.S. Census Bureau show that the median monthly rent for vacant units in the second quarter of 2013 is $735. In 2006, that figure was just below $600. The report also shows that homeownership is down and a growing portion of the nation is turning to rental units. The surge in renters is partly due to the slow economy and partly to a lack of trust in the housing market recovery. After the crisis of 2007, many former homeowners who could buy again are now choosing to rent instead, which is causing renting to lose its stigma.
While this trend might seem negative for property investors, it actually creates a unique investment opportunity for Buy & Hold investments. In a Buy & Hold investment strategy, an investor purchases a rental property, rents the units for a period of a few years, and then resells the property, hopefully for a hefty profit. With the housing market on a steady upward trend, Buy & Hold investors can potentially make 10 to 20% on their property investment in addition to the rental income that they make throughout the life of their loan. Unlike a fix and flip investment strategy, Buy & Hold loans provide property owners with monthly income as well as long-term gains.
To learn more about Buy & Hold strategies, contact ZINC Financial today. As your private money lender, ZINC can help you obtain Buy & Hold loans quickly, giving you the tools and resources that you will need to succeed as a property investor in the current marketplace. ZINC can also provide you with information about the best rental markets and tax incentives available to landlords.
Learn more about ZINC Financial’s successful investment strategies by talking to one of our experienced financial advisors today. Simply call 559.326.2509 for more information.