Making Money with Rentals

For our current market in Hampton Roads, Virginia, there is an abundance of great properties for sale. If you’ve ever thought about investing or are currently investing in real estate, this is the time for you to make your money. With the large surplus of available properties, investors are negotiating great deals on great producing property.
This is the time to buy a property, rent it, and hold it for the next 5 to 10 years, preferably. You have experienced the market correction and real estate here locally is between 3-5% less than it was a year or two ago. Not only that, but there is a great cushioning affect with seller contributions and negotiations on price. I have noticed some great rental units with excellent prices, and they would be great to pick up, rent out, and sit on the cash flow.
I think the mulit-family properties are the way to go for long term investments. Primarily because of the cash flow. If you were to pick up a 3 or 4 unit building at a reduced price, and rent them for market rent, and hold it. You would make more cash flow and as each year goes by, you will make even more. The main differences between single family and multi family is that you only have one tenantin a single family, and if they don’t pay rent, your out 100% of your rental income, whereas, with a 4 unit, you would only be out 25% of your rental income. Also, with yearly rental increase, your cash flow will be exponentially more with multi-family because if you increase $25 a unit, that’s only $25 for a single family per month more, whereas a 4 unit once again, that would be $100 per month more for each year. That’s add up!
Once the market begins to shift back within the next year or so, those that took advantage of this market will reap the benefits. Properties will begin to appreciate again and the reduced price you received will be realized as instant equity and gain.
It costs more to invest in this market, but for those that know the old saying, it takes money to make money, holds true. Check out my site for further investing information.