Real estate: Market ripe for those looking for investment properties
Today’s real estate market represents a tremendous opportunity for buyers who would buy a home, condo, or duplex as an investment. Interest rates are low, values are excellent, and demand for rentals in strong.
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It is an excellent way to fund a college education for kids, retirement, or the purchase of a second home.
There has been an unrealistic expectation that you can buy and sell real estate every three to five years and make a killing. Any successful real estate investor will tell you that real wealth comes from the combination of loan payoff and appreciation.
With good credit you can buy a rental home with 25 percent down. The interest rate for non-owner occupied investment real estate is about 1 percent higher than financing of owner occupied homes. The rent the tenant pays will pay off the mortgage and if your time is right the home would be paid off when your child starts college. You can then sell the home, borrow against it, or best yet use the cash flow to pay for tuition, books, room and board.