Any investment decision should be decided upon and executed strategically, and really, is there anything more iconic in real estate strategy than location, location, location?
It’s for that reason that cities viewed as hotbeds for certain industries – tech startups, especially – tend to face rapidly growing real estate markets that cater to younger families, professionals, transplants, and speak to a booming economy. If you’re lucky to live in or near such a city, jumping into real estate investing to grow your financial portfolio might make sense.
But what if you don’t live in a hotspot city with a highly sought-after real estate market?
A strong local economy – whether it’s bolstered by tech or any other industry – will generally be a good indicator of how the real estate market is faring. After all, just because a city may not be a tech hub today doesn’t mean that won’t change in the future (case in point, Charleston, South Carolina). Looking at things like economic and housing projections, keeping up to date with industry shifts or new investment news can all feed into the decisions you make regarding your real estate portfolio.
Despite the devastations caused by COVID-19, the rental market has still thrived, opening doors for real estate investors to better understand and utilize long-term financing options like DSCRs. Long-term financing can relieve investors of the pressure to use rental income on debt service and instead leverage their capital to invest in future projects. At Temple View Capital, rental loans can run the gamut to cover new purchases, refinance, and cash out options and can be applicable to single-family homes, 1-4 unit condos, or townhomes.
Being plugged into market trends, particularly in up-and-coming neighborhoods, can be the difference maker between investing early in housing revitalizations, and looking to buy properties when either a) the prices have already skyrocketed or b) most properties have already been purchased. Keeping your finger on the city’s pulse will allow you to track trends and be ahead of the pack when investment opportunities begin sprouting up.
This is where rehab loans can play a major role in fix-and-flip properties that will go back on the market in no time. While loan rates may fall on the higher end, fix-and-flip properties often sell quickly, making loan repayments painless. These, too, can be applied to almost any kind of property, from single-family homes to 1-4 units, condos to townhomes.
Chasing industry booms to make sound real estate investments can be an effective way to build your portfolio, but don’t overlook the neighborhoods and towns in your own backyard that could be thriving in different ways. After all, many D.C. workers reside in Baltimore for the housing opportunities unavailable to them within the D.C. limits. As a result? Revitalized neighborhoods and historic rowhomes brought back to life.
If you are ready to explore your financing options for your next project, contact Temple View Capital today.
Doug Perry is Correspondent Sales Director at Temple View Capital, a national private portfolio lender that offers flexible financing for investors in residential real estate. Founded by entrepreneurs with more than 20 years of residential mortgage and real estate investment experience, Temple View has been at the forefront of innovative product development since its inception. Utilizing a common-sense underwriting approach, deep commitment to customer service and a well-capitalized balance sheet, Temple View enables real estate investors, correspondent lenders and brokers nationwide to optimize financing efficiency on real estate investment projects and rental properties.
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