Wednesday, January 18, 2012

Is it Time to Invest in Rental Property?

Once statistic we follow closely here at is the ratio of Rental cost to home ownership cost. More than any other yardstick this tells buyers if there is a market out there to support the money they are spending to buy a house. In markets like Southern California's inland empire, homes can be bought and rented out at a positive cash flow right away. Or if you decide to sell after buying, you know that there are renters who can afford to trade renting for buying.

One fun resource is which compiles a rent / buy heat map allowing users to compare the rental markets to buying markets.

The Zillow recently chimed in with an article about what makes a good investment in real estate.

Where ever your market may be, it is a good idea to investigate rentals before you sell or buy. They often are the key to the current prices.