First off, this a HOT HOT market we have in the Charleston Area. The fact of the matter is that the demand for rentals is higher than I have ever seen it.
I remember the first rental property I had. I was still in college and scraped together every dime I had,. I purchased a Bank Owned Property, for $50K. A cute little 3 bedroom, 2.5 bath Condo. With Insurance, Taxes, Regime and Mortgage, I was paying $500 and getting $600 in rent. . I was so proud of myself. In fact, during this time period, I wrote an investment paper for class on this very investment. My Prof gave me a C, stating it was a good paper but not realistic. He changed it to an A, when I brought my mortgage in, along with the rental property. It wasn't that he was wrong, it was that I was lucky. You see, up until a few years ago, Landlords were lucky to break even, every month. The benefit in renting came at Tax Time and when the property was sold.
20 years later, the Prof would give me a C because my expectations were too low, and rightfully so. Many landlords are seeing 40% or more, from a positive cash flow perspective. What does that mean, simply put, if they are paying $1000 a month, they are getting $1400 to $1500 a month. Benefits:
1. Someone is paying down their mortgage.
2. Tax benefits due to more, interest, insurance and depreciation.
3. Housing market are steadily increases, so is the equity for that landlord.
The only thing you have to do is invest in the right area, at the right price and ......your investment is paying for itself, providing a positive cash flow while equity builds by a reduction in principle in the mortgage and a positive cash flow at the end of the month.
For more information, give me a call....Let me show you the numbers. I am at 843.922.2003 or you can simply click Dave Schuj.