Single family homes are becoming popular with more than just newlyweds! Like minded investors have banded together to create real estate investment trusts, nicknamed RETIs, with the sole focus of rehabilitating foreclosed single family homes. Across the country, investors are discovering value in previously foreclosed homes as rental real estate.
In the past, it wasn’t too uncommon to see an individual buying a home and then renting it out as a leased property, however it wasn’t until just recently that investors started banding together to do the job more efficiently on a massive scale. The good news for you is that the rapid growth of these trusts are carving out a large market in a previously quiet area of real estate, driving down the costs involved with rehabilitating foreclosed homes and allowing small time investors to get a piece of the pie.
There are two key effects of the recent economic recession that make this business profitable. The first of which is the large number of foreclosed homes on the market, allowing prices to stay generally low, making for a relatively miniscule initial investment cost. As a result of the increased interest in rehabilitating homes for rental the prices of the actual labor and materials that go into the job have gone down. The second factor is the surge in the number of families who can’t afford a mortgage, but still want to enjoy the comfort of a single family home. The result of these peculiar factors mixing with the current market conditions creates the perfect climate for small investors, who perhaps already own a home of their own, to supplement their income by rehabilitating and renting out a second property.
If you are interested in learning more about homes in Stephenville, please contact us. We’d be happy to assist you with your real estate journey.