Despite the Gloom and Doom - Now is a Great Time to Invest in Rental Property

The real estate market is in a crisis. Foreclosures dominate the headlines and access to loans seems limited. The government is trying to solve the problem by giving a tax credit to first time home buyers but this is unlikely to do much for the real estate market.

The real estate market will only turn around when investors (the nations risk takers) see opportunity. Some areas of the country may still take time to turnaround, but real estate is largely a local phenomena. While some markets are still tanking others have areas where multiple offers are being received on houses.

Buying single family houses for investment in today's market can make a lot of sense. There is an abundant supply of these properties and prices are starting to fall back in line with historic values.

At the same time there is a large sub-class of families that are used to owning and living in a single family house but are now unable to qualify for the mortgage. So there is a high demand building for single family homes as rental units.

Buying a single family home as a rental property investment makes sense when the PITI you pay is below what local rents are. With banks up to their eyeballs in REO properties you have a lot of negotiating leverage to get a good value on a property.

You might also consider using a method of financing that became quite popular during the late 1970's and early 1980's when the country was in a recession - seller financing. With CD's paying almost no interest and some sellers not able to move their properties, seller financing might appeal to them.

When renting your house use a lease-purchase method to attract those "owner-buyers". You can probably get a small premium for your rental and have fewer tenant headaches.

See the link below for more information.

Rent to own
A rent to own marketing concept can attract high quality tenants.