The rental market is always considered to be a good starting ground for new investors. Not only can one earn a substantial share of income through rentals every month, but it also gives the liberty to explore the market trends and sell off the house when the time and prices are at their best.

Real Estate Investing

When you are considering real estate investment in the rental sector, the two main factors that you should have in mind are the type of property and its location. As the current inventory is tight and the number of houses on sale is reducing day by day, most buyers are turning towards decent and affordable rentals while they wait.

And the good news is that rentals are not only popular in the affordable or single-family home niche – the galore is equally attractive for luxury homes as well! Since the luxury real estate market is always regarded as a bit risky for flipping, going for rentals can prove to be a more secure and profitable way to seal the deal.

Thus, it can be safely proclaimed that the rental market is definitely on a rise at the moment, and now is the time for real estate investors to get in their thinking boots. Want to know how you should plan and select a high flying rental property and what are the best markets to invest in? The following tips will be helpful:

Think Long Term

Short term market trends are usually considered when you are buying the property for quick sales or flipping. However, when going for rental investment, it is important to think of the long term benefits and profits involved. Assess and plan carefully and research anything and everything – from the condition of the property and its location to the surrounding neighborhood. Also, it is a good idea to ask around and take help from professionals. They can tell you what chances the property holds for sales in future. Think and plan carefully and then go for a house that scores full marks on all these factors.

Look for Property that Pays!

Along with the location, the type of property you have on offer also has a great deal of influence on the target market you wish to attract. Decent well built homes in safe neighborhoods and within close proximity of schools are mostly considered by families. On the other hand, bachelors, immigrants and students go for apartment rentals to cut down on the costs. Those who wish for a stylish and comfortable lifestyle often opt for waterfront property or condos.

Best Markets to invest in Rentals

According to figures collected by Zillow.com, there are a handful of cities where rental properties are in great demand because of the increasing median prices in the market. Rentals are in great demand in metropolitan cities like Boston, New York, Seattle, San Francisco and San Diego etc. As the home median prices have almost jumped to double figures in most of these cities, a lot of people are considering rentals as the best choice for residence.

by, Paul Cook: EquityBuild News Contributor

Source: Statistics from www.zillow.com