There is no doubt that there are now many incredible opportunities for investors in the real estate market, but what are the best strategies looking ahead to 2011 and beyond?
The recent housing boom made many real estate investors over confident and sparked a fury of speculative buying. This lead to investors acquiring and gambling on all types of properties without giving much thought to the core principals of successful real estate investment – buying low and investing in long term rental properties. If these investors had only stayed true to these tried and tested means of building real wealth and income through real estate it wouldn’t have mattered what the market did and we wouldn’t be seeing the economy in such a state as it is now.
Fortunately for those of you looking to invest now and take advantage of the many great opportunities out there you will find many bargain priced homes. Combined with today’s record low interest rates you will also find that they hold the keys to incredible cash flow every month. Looking ahead through the end of 2010, 2011 and beyond investors will see the best returns by acquiring discounted properties and building portfolios of passive income producing rental properties. Those that choose this path will not only enjoy a healthy regular income but will be setting themselves up for a big windfall in equity when the market fully recovers.
One of the best ways for investors whether brand new or extremely experienced to harness this proven strategy for successful real estate investing is to invest in multifamily properties. Duplexes are of course the most common property type in this category that provide easy access and can double as a great first home that pays for itself. However areas like Hudson, Massachusetts also offer many great larger multifamily homes that offer even more cash flow. Investing in properties with a large number of bedrooms in the right areas can be rented out by the room. Hudson, MA has many 6 bedroom properties available at less than $100,000. Do the math. 6 rooms rented out at $100 per week each is $31,200 in annual income from just 1 property. Having four properties like this would mean achieving a healthy six figure income a year. Even if you had to finance your acquisitions today’s interest rates mean monthly mortgage payments of less than $400 a month, leaving plenty of cash flow on the table. You could even still afford to pay off the property within three years and then be sitting on a an incredible debt free, money making machine.