While the housing market is still recovering, there’s an interesting — and growing — opportunity for real estate investors: become a landlord. With so many people renting, home prices the lowest they’ve been in years and a glut of foreclosures on the market, many investors are trying this new role with great success. It only helps that the cost of rent, particularly in Chicago, has skyrocketed.
If an investor does their homework and chooses a prime location for renters (thinking about factors like access to transportation), there’s a great opportunity to be had. When done right, renting out a single-family home or a condo in downtown Chicago results in a positive cash flow, even after taking into consideration the cost of mortgage and upkeep, and is likely to appreciate in asset value over time too.
Many investors have already recognized this opportunity with more than 20% of home sales in April 2011 going to real estate investors. The reason investing in rentals works so well is simple: with rental income, investors are able to get positive cash flow right away while they wait for capital appreciation in the medium/long term. The return on their investment comes up front and on the back end.
There’s also a reason condo buildings have been converting into rentals lately: developers need to meet the demands of the consumers. Wise investors should follow suit.
CondoDomain has a plethora of condos and single-family homes on the market that are perfect opportunities for future rental income. Search CondoDomain’s MLS for your target neighborhood here.