What types of property deals are ripe for property Investors right now?
The market is always changing. What worked 5 years ago may not work as well today. Here are 5 niches to explore, test out and find bigger profits in now
Small Multifamily & Mixed Use Properties
Overall yields on single family home rentals have been getting squeezed over the last year or so. To get the same spreads as recent years, many property investors are having to look at multifamily properties or apartments. Mixed use is still a hot item too but need a little more experience in the industry to manage
It’s true that the Airbnb Effect has dramatically driven up asset prices in many areas over the past few years. Yet, if you look, you can still find sweet spots where property prices are low and the potential yields from short term rentals can be massive. Can be a little more difficult for us as overseas investors to ensure we have the right areas though, but definitely worth thinking about as a strategy for the larger, 4-5 bedroom homes.
The US is in an interesting moment, coming off of a down period, but with a strong new economy. That means there could be fewer good property deals or foreclosures. Yet, there are all types of reasons for sellers to be motivated. Age can be a big one. With age, homes can end up being too big to manage, or just don’t fit health and mobility needs of seniors. This can be a big reason to be able to pick up off market properties and create more win-wins.
Construction REOs have been a secret pocket of the distressed property industry. The average homeowner or new investor may not want to take on a home or apartment building that wasn’t 100% completed. That means these deals can have less competition and more bargaining room. You may find houses that just need a little love on interior design and applying for the Certificate of Occupancy. For those interested in more active incomes, these can be a good way to get in and fix up for under market value giving a good rental return or flip for a profit return.
There are still foreclosures and foreclosure auctions. Check the data and you can find fresh spikes in this activity in different parts of the country. Be flexible and willing to go where the deals are at and you can still find great profits.
f your unsure of how to find these types of deals, or don’t know where to start, fear not … We do!
This is really the backbone of what we do. We source, screen and perform due diligence on hundreds of property deals in the US to narrow down to the ones that work and have teams on the ground to do the legwork for us…
Leverage off our team in place, book a call with us today to discuss how!