In These Tough Economic Times, It’s Hard To Know What’s Smart. Kam Derakshani Explains Why Real Estate Still Makes Sense.
SEATTLE , WA, UNITED STATES , April 7, 2021 /EINPresswire.com/ — The past year has thrown curveballs at investors, and many people are unsure of how to make smart money moves as the markets continue to evolve. Investor Kam Derakshani says that this is a good time to invest in real estate – if you do it right.
Currently, there’s a strong seller’s market in the United States. This means that more people want to buy houses than there are houses available. While this does mean higher prices, it also means that rentals are a hot commodity. Kam Derakshani recommends investing in large properties that can be turned into rental units.
Deciding where to buy is even more important than deciding exactly what to buy. According to Kam Derakshani, you’ll want to search for an area that has high rental occupancy. Check out the statistics on rental properties before you buy – you’ll want to be sure that the majority of properties are occupied, and that most properties do not stay empty for long after a tenant moves out. You’ll also want to consider how much of your property mortgage can be covered by rental payments. The more of your mortgage that you can have covered from rent-paying tenants, the better. Lastly, Kam Derakshani says that it’s smart to invest in an area with low tenant default rates.
While it can make sense to purchase a rental property in a large urban area, this is not the only option, according to Kam Derakshani. You may want to think about investing in an area near a large graduate school or hospital, where young professionals who are starting their careers or finishing up graduate studies need a place to stay. In addition to having committed tenents, this also provides you with a regular influx of new potential renters, according to Kam Derakshani.
You’ll also want to areas with unique attractions, such as apartment complexes near sports stadiums or concert venues. You may choose to rent out apartments for events, or a week or weekend at a time. Doing so can allow you to charge much higher fees than you would typically get from a tenant over that time. According to Kam Derakshani, websites like Airbnb, VBRO, and others allow you to list your vacant apartment the same way a hotel room would list a vacancy.
Kam Derakshani says that it’s important to keep an eye on the market this year – as COVID-19 changes continue, it’s likely that the market will fluctuate.
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