The hype around real estate investing is just that. A large amount of Hype and little know ways to successfully invest. If you are a fan of TV shows about Real Estate remember 1 thing, they are not real nor are they the way to invest. They are simply entertainment, period.
There are 2 types of investors. The Flipper and the Keeper.
The first is the Flipper. The Flipper is one who looks for below market valued homes, makes renovations and updates, then resells the home for a profit within a specific time table (3 to 6 months). Profits range from 10% to 20% depending on markets. Usually all cash offers. In fact some radio stations have advertisers who brag about buying your home for cash. If you go that route to sell your home to a Flipper, remember they are looking to buy the home for 20% below market and use your equity as their profit. Generally not a good option.
The Keeper is the most common way for true investors. Upon purchase and rental of the property the property income covers all the costs. Why wouldn’t you allow someone else to pay your mortgage? Over time this method will produce serious portfolio growth, not just fast cash for a short time.
If the later is true, where then are potential markets? According to experts, data, and projected regional growth these are areas I would encourage investors to think about.
In California only Riverside and Sacramento show potential for long sustained growth, with still entry level home prices. In fact areas like SF and San Jose are currently losing value due to hyper pricing.
Other areas include New Albany, Ohio; Atlanta, Georgia; Pittsburg, Pennsylvania; Columbus, Ohio; Hudson Valley, New York; and Indianapolis, Indiana.
Over the next 5 years, these areas are projected to grow at a pace well above national averages. If you are interested in getting started in investing or have an investment question, please ask your questions in the comment sections below. Real Estate Investing is the powerful investments you can ever make!