Are the stars are aligned for you to make a great real estate investment? Although times to buy and flip houses were better in 2011 and 2012 for investors, end-buyers lacked confidence. Yes, prices are up but more importantly, buyer confidence is up. More people are looking to buy now, which makes it a great time for you to make the move into a real estate investment.
Your Real Estate Investment is Best When Prices are Rising
The two hottest markets are flipping in upper scale neighborhoods and vacant lots that are residential zoned. Before making a real estate investment, research houses in the neighborhood to learn what they are selling for and how long recent sales were on the market. Obviously, your real estate investment should be in neighborhoods with rising prices and active markets.
Don't only look at recent sales. Research neighborhood sales over the past couple of years to find the neighborhoods with the fastest rising prices. These will also be the neighborhoods with the most active sales. Then find an ugly duckling in an upscale neighborhood where the market has picked up. Not a top end market, just an upscale market. Upper scale is a larger market where people have the financial ability to move up with their personal real estate investment.
Real Estate Investment - The Market is Wide Open
I'm very optimistic about the current market. Not only is the flipping market heating up but also builders are again buying up vacant lots and tracks of land to develop. Of course, vacant land is much less expensive than land with a house on it. Flipping vacant property is a great real estate investment for beginning investors with only a little money.
But your real estate investment doesn't stop with either flipping houses or flipping lots. Now may be the time for you to become a landlord. According to the U.S. Census Bureau, although rising, homeownership is at the lowest level since 1996. Compounding that with the National Association of Realtors' forecast that rents will go up 4.6% this year, following a 4.1% increase last year, makes renting a tempting real estate investment that lets the renter make your mortgage payment so you keep the appreciated value while making a monthly profit.
If you've been sitting on the real estate investment sidelines, it's time to get back in the game. Regardless of your preferred real estate investment strategy, multiple strategies are taking off and will continue growing for the foreseeable future.