Rent Continues to Rise in California and Other States

If you have been toying with the idea of rental real estate investing, now is really the time to act. Rent rates continue to rise around the country with some of the biggest increases seen in states like California. According to MyApartmentMap.com, the average rent across the state of California right now is $2,384. Nationwide, the average rent on a studio apartment is over $1,000 and the average rent on a three bedroom apartment is just over $1,600. Compared to just last year, rent prices have gone up over 3%.

In other words, it’s a very good time to be a landlord.

In some markets, construction is finally starting to catch up to the demand for new apartments, but in many markets builders simply can’t get new apartments up fast enough. Part of the reason why demand is so high is that housing prices are also currently on the rise and out of reach for a lot of Americans. At the same time, some people we could buy are choosing to rent instead thanks to the flexibility offered by renting. Others choose to rent to be closer to jobs in major cities like Los Angeles and San Francisco. Even as rent prices go up, demand is staying steady and vacancy rates are remaining extremely low.

As a buy and hold real estate investor, you can take advantage of the current housing market at both ends. The property that you buy is likely to increase in value over the next few years, according to all of the major forecasts. At the same time, you’ll be able to collect monthly rent from your tenants, which is great for your cash flow. The passive income that you can earn from rental real estate investing is simply unmatched in other types of investments.

Of course, buy and hold real estate is something that you can’t simply jump into. In order to be most successful, you should research your options carefully and make sure that you choose buy and hold loans that suit your investment needs. Ask yourself whether it makes more sense for you to invest in a single family property near where you live or a multi-unit building across state lines. Do you want to serve as your own landlord or hire a property management firm? All of these decisions will have an effect on your bottom line.

Thankfully, the team here at ZINC Financial is here to help. We offer both single-family and apartment flipping loans for buy and hold investors. We can also provide advice on which markets are currently the hottest and how to effectively manage your own property, if that’s the route that you choose to take. Give our office a call to learn more about our current loan rates or to discuss the numerous advantages of rental real estate investing.

Posted in Buy & Hold Loans, Buy and Hold Real Estate, Rental Real Estate Financing, Rental Real Estate Investing