4 Reasons to Invest in a Rental Property
Most Americans are made to believe that buying a home for themselves is a great investment that will help them save money. But according to Grant Cardone – who owns more than 4,000 apartments himself – buying a rental property is a much smarter move. It makes sense: owning rental properties create steady income while owning a home does the opposite. Still not convinced? Here are four reasons why there’s never been a better time to invest in a rental property than now:
1) Renting is all the rage right now
Did you know there are currently 930,000+ rental units in the United States? If that number seems high, keep in mind that it will only go up. In the last two years alone, apartment construction in America has increased by 21%. So how does this affect real estate investors? With the need for rental properties being higher than ever before, it’s a lucrative time to purchase a rental unit. “If you go into multi-family the right way, over the next decade it could be the best investment of your lifetime,” says Grant.
2) Your profits will be high (and will only get higher)
Rent in America is currently at a record high, and it’s only getting higher. 91 of the 100 largest U.S. cities saw rent increases over the last year. Some cities, such as Seattle, had an increase of 7.2% in one single year. As rent increases at such a rapid rate, it’s hard to ignore that the profits rental owners make are increasing just as quickly. And the best part? Experts don’t see these increases slowing down anytime soon. “There are many indications that apartment investments will continue to be great,” Grant says.
3) There are plenty of responsible renters out there
There used to be the stereotype that only younger or financially irresponsible people rented instead of owning, which could defer even the most determined real estate investor from wanting to play landlord. However, that’s simply not the case anymore. More than 1/3 of Americans currently live in rentals and 40% of renters are aged 45 or older. In this day and age, it’s completely possible (and easy!) to find responsible, financially stable, and low maintenance renters. “America is becoming a nation of renters,” insists Grant.
4) Current renters don’t have crazy standards
Did you know that 84% of millennials are willing to sacrifice key home features to rent in their ideal neighborhood? And on the flip side, 89% of them are also willing to tolerate a less than desirable neighborhood if the apartment has what they’re looking for otherwise. So what does this mean for landlords? You can’t lose. Due to raising prices and a competitive market, renters are willing to settle for unideal situations, guaranteeing you’ll be able to fill your units quickly. And even if you can’t? Grant insists you can make a profit anyway. “If you have a building with 16 units, even if a couple are vacant, you still can make it work,” he says.
It’s clear that purchasing a rental property is a great investment, especially right now. “In my opinion, it’s the best way to grow wealth,” Grant says. However, you shouldn’t jump into buying just any old rental, especially if you lack real estate experience. To ensure you have all the facts and can make the wisest investments, sign up for a 10X class here here.