Invest in Rental Properties and Hire a Property Manager
Are you looking for a place to invest your money but struggling to make a decision on where to put the funds? The stock market, mutual funds, a business venture, and real estate all prove to be profitable. If you want to make big bucks and get a promising return on investment, property management Sacramento companies are seeing investment property owners reach their wildest financial dreams by choosing real estate. Did you know that in 2018, renters paid out more than $504 billion dollars to landlords and management companies? Yes, you read that right, billion. It greatly surpassed 2017’s amount of just $12.6 billion. If you want to get in on the action, there is still room for you.
Building to Rent, Not Sell
It is no secret that rising interest rates, stricter zoning and permitting, and an increase over recent years in home building materials are not only making housing unaffordable, but also scarce. As hopeful wannabe homeowners have saved money for a down payment over the years and excelled in the workforce to achieve their desired salary, their dreams of becoming a homeowner are getting crushed. And while we do not have a solution to homeownership problems, property management Sacramento company, RPM Select is aware of a home builder that has found the light at the end of the dark tunnel. Christopher Todd Communities, LLC, built more than 450 homes in the Phoenix, Arizona, area last year. The catch is that they do not build homes for ownership, but for rental. These unique communities are horizontal apartment communities made up of single family homes. Occupants do not need to qualify for a loan with a high interest rate to get into affordable single family housing. They can rent a brand new single family home, tailored to their choice, and save the money that would otherwise go to pay interest. The concept of build-to-rent is catching on across the country. Developers find it extra attractive that they can give high quality service to their tenants because the houses are in a concentrated area. AHV Communities, LLC, is developing this same kind of community in Texas, BB Living is also developing in Phoenix, and NexMetro Communities will break ground on $300 million in projects in 2019. It is a business model that has taken off and is becoming increasingly successful amongst national companies in property management.
Sacramento Rental Properties Remain Profitable
Select understands that individual property owners do not have the capital to build entire built-to-rent communities, but they can invest in a rental properties and see great returns with their investment due to the high demand for rental properties. According to Local Market Monitor, Sacramento made the top 25 best markets for rental properties in 2018. Sacramento has a population of more than 2.2 million people and a job growth rate of 1.8 percent annually. The research also found that Sacramento has a 4 percent population growth over a 3 year period. Owning a rental property in a community with job growth and population growth is a guaranteed way to fill a vacancy. The average home price is $348,000 which is on the higher end of the top 25 list, but still proves to be profitable with the help of experts in the property management Sacramento industry. Select specializes in the Sacramento community and pays great attention to each property it manages.
Getting a Loan for a Rental Property
Before diving in head first, there are some things to know and consider when purchasing an investment property for the sole purpose of renting it out. Unlike purchasing an owner-occupied home, rentals require more. It is common for lenders to require a minimum down payment of 20 percent, since mortgage insurance is not available for investment properties. Rental properties typically have higher interest rates associated with them as well as different approval requirements than owner-occupied loans. If you are looking to buy an investment property, speak with a mortgage consultant to determine your requirements.
Renting Out Your House with the Top Property Management Sacramento Company
Owning a rental property is a big money maker, but it also requires a lot of time, attention, expertise, and organization. Managing a rental property without knowledge or experience has been known to land investors in hot water. When property owners need to hire someone they can trust, they call Select. With more than 35 years of experience, we know the laws and regulations. We take care of the daily maintenance calls from tenants, scheduling of maintenance, rent collection, accounting, move ins and move outs, marketing, showings of the property, and uphold a rigorous tenant screening process. We find our clients the most qualified tenants, in record time.
Get rich the easy way. Let someone else pay the mortgage and manage the property for you. Call the top property management Sacramento company, Select today.