Rental Market Offers Investment Opportunities

The rental market is continuing to offer real estate investment opportunities that may offer good returns for buyers willing to jump into the landlord role. According to Money Magazine's September 2nd issue of 2011, nearly 35 percent of occupied homes were rented in 2010, which is a 33.8 percent increase from 2000. Rents are rising and demand is up too, partly to the 4 million former homeowners who’ve faced a foreclosure and are now renters.  Nationwide, rents have increased 11.6 percent in 2010 to an average of $1,320 a month, according to Hotpads.com. Record low mortgage rates and general discounts on home prices means that opportunities can be found.

What to look for? Single family homes with 3 bedrooms and 2 baths in neighborhoods with good schools and close to transportation is a smart choice. Buying property close to you permanent residence is a good idea. When determining if the  numbers will work, make sure your rental income covers  the mortgage payments on the property as well as an extra 20 percent buffer to cover repairs, property management or get through vacancy periods. Consider holding your real estate investment for a while.  According to a survey by the National Association of Realtors®, investors plan to keep their real estate investments for 10 years, on average, before selling.

To view what homes for sale in the Orlando area click here.