Investors are capitalizing on a confluence of events: depressed home prices, rising rents and strong rental demand. A typical plan? Buy cheap. Collect rents to cover all costs and give themselves a nice monthly paycheck. Cash out — when home prices recover.
Why buy and hold, because it has become so competitive searching for properties with great spreads, the flipping market has slowed tremendously. The savvy investors are now buying and holding properties and taking advantage of the phenomenal interest rates that can currently be had (and will, most surely, soon be gone.) There has never been a more perfect time to leverage your investment or IRA dollars into real estate. Historically low prices, combined with rock bottom interest rates make this the perfect time to buy and hold cash flowing property in Las Vegas. Our cash buyers are getting returns of 8-12% annually on their money, and financed buyers are doing even better with returns of 15-25%.
Real estate is also cyclical. Demand is strong now for single-family rentals because so many people are losing single-family homes to foreclosure. But as foreclosure rates drop, home prices are likely to rise. That could inspire home buying and lessen single-family rental demand.
For this year the rental buying market will be hot. But our window of opportunity to buy the right rentals, at super wholesale prices, for positive cash flow and equity profit when we sell… will not be here for long. You must seize the opportunities that present themselves to you today, before you look back and regret waiting.
If you are interested in learning more about what we do or investing in the Las Vegas real estate market, please contact Nicole Ivory directly