http://www.cashflowexperts.biz/ Thomas Kish - President
Many investors I talk to are wondering what higher interest rates will mean to their local real estate market. I believe that single family home prices will cool off with the new supply of foreclosed property that has been hitting the markets. So I am not looking for rapid appreciation of single family homes to continue in most areas. We should all be happy with an average rate of appreciation for the next 2 years.
I do see a good opportunity this year in the multi-unit apartment building market. Because Rent rolls are as low as they can get in all the buildings that I look at. You should be able to negotiate better multi unit prices if the seller has low rental income.
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I can already see more renters coming back into the rental market this year as the high rate of foreclosures drives many people back into rental property. And that means that rents will go up over the next 2 years.
So the golden opportunity for investors right now is the purchase of apartment buildings that have good cash flow now. Because as rents go up in the next 2 years the cash on cash returns on these investments just keep getting better. And these apartment buildings resale value will continue to go up in the future no matter what happens to the price of single family homes, because apartment buildings are valued based on their current income!
This kind of real estate will always be in demand by other investors in the future and we should see above average rates of appreciation on these buildings over the next several years!
VISIT OUR WEBSITE www.CashFlowExperts.Biz and check out our interactive tele-seminars. I teach you how to beat the system by investing in good real estate without using any of your own money! Or call 612-251-9830.
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