If you look back ten years, every property investor was flipping properties and reselling them as fast as they could. Today investors rent out about half of the homes they purchase due to the drastic change in the real estate market over the past 5 years. What the current market has provided is those with money available have access to low homes prices, low mortgage rates, and a rental market that continues to grow.

First time property investors are starting to grow in the United States. They see a buyer’s market, and a strong rental market will all signs pointing to it continuing. The renter pool has increased over the past few years due to many factors such as: high unemployment, volatile stock markets, and other potential buyers waiting to see what happens, of which puts those people in the “renter pool”. Another factor according to a recent poll states that the average first time buyer age has risen from 23 to 35 which provide a property investor 12 more years of rental income.

Obtaining financing can be a problem for some, but there are other factors to consider if you are a first time property investor. You need to look at the property as a long term business that will take some time and money to keep up. One of the most common mistakes made by first-time property investors is submitting an unrealistically low offer. Another big mistake first time property investors make is calculating maintenance expenses versus rental income.

When you buy a property that you are turning into a rental, you need to think like renter. They will want to be near shops, and service provides as much as possible. Another thing to consider is public transportation for those who do not have a car or work in downtown locations. Last but not least do not forget about parking. Renters are always looking for a dedicated parking space for themselves, to avoid having to find parking on the street blocks away.

If you are looking to purchase an investment property, now is the best time we have seen for years. With low mortgage rates, high volume of inventory, and low home prices you will be able to purchase an investment property at a lower price than you will probably see again. Combine that with an excellent rental market that will continue to stay strong; you have a great recipe to grow your personal wealth for years to come. Some people are afraid of renting however by using a property management company to manage your property, the only thing you have to do is make executive decisions, and watch your bank account grow.

At Renters Warehouse, we value all of our tenants and property owners.  We continually strive to provide you the service and tools to make life a little easier. Visit www.renterswarehouse.com to learn more about the company, our properties, our services and its CEO, Brenton Hayden.

Tune in every Sunday from 8am to 9am as I’ll be your host on AM 1130 Fox News Talk. “All Things Real Estate Radio” is a call in show with a panel of residential and commercial real estate experts discussing the latest news, trends that affect you and the real estate market today. www.KTLKRealEstate.com.  Renters Warehouse is proudly endorsed by Glenn Beck, the 2nd most watched show on television and the 3rd most listened to radio personality in America, as well as Josh Altman, Star of Bravo TV’s Million Dollar Listing.