The new year is slated to bring changes to the housing market, and chances are, your area will see a boom in rentals. Now’s a great time to start evaluating your options for Rental Property Loans In Arizona if you hope to cash in on the growing market.
1. The economy is strong. The telltale signs of a strong economy are everywhere. The Bureau of Labor Statistics (BLS) puts unemployment at just 3.7%, down form 4% last summer and 4.4% last year. Earnings are also up, and the consumer price index shows living costs are holding steady. People are more able to spend on fun things like vacations, making now a good time to great time to have a vacation home and get it listed on sites like Airbnb and HomeAway.
3. Affordable housing is drying up. One downside to the great economy is that more people have been able to get into homes. According to a new report from CNBC, the low end of the housing market has the highest demand, and also has the fewest offerings. Because of this, multi-family units and single-home rentals will continue to be solid investments.
3. The cost to own is rising. Naturally, when fewer homes are on the market, prices increase. They’ve been climbing at a steady pace for years now. Adding to this, interest rates are up; higher than they were a year ago, though certainly not at all-time highs. Those who can secure Rental Property Loans In Arizona are in a unique position to make the most of the market shifts.
Evaluate Your Market to Ensure Top ROI
Not all markets are seeing the exact same shifts, cautions the CNBC report. Coastal areas, in particular, are seeing the first shifts and are therefore hit the hardest by changing markets thus far. The trend is expected to move inland, though experts believe that more new homes will come available and relieve some of the strain. If you’re considering taking out Rental Property Loans In Arizona to fund your investments, do a comprehensive market analysis and see what new home growth has been like or perhaps focus on a strategy like fix-and-holds in inner-city areas with little opportunity for future housing growth to ensure a smart purchase today will be a wise investment tomorrow.
A diverse portfolio is key to remaining successful.
“The housing recovery may have peaked, but it isn’t over. As more supply hits the market, sales will grow again,” says CNBC real estate reporter Diana Olick. The changing market being seen today is typical of a cyclical market, and the only way to ensure you always have steady revenue is to diversify your holdings. However, Olick adds that “a huge generation is aging into its homebuying years, and another huge generation is downsizing,” plus younger generations tend to favor rentals to begin with. If you’ve historically focused on fix-and-flips, now is a good time to explore your options for rental property loans in Arizona, so you can generate cash today and continue earning for life.
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Dennis Dahlberg Broker/RI/CEO
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About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.