Is Now the Best Time to Acquire a Rental Property?

In the last few weeks we have witnessed an encouraging uptick in the stock market and housing markets. It may be a sign of a bottoming out process, but who knows. One thing that is certain, mortgage rates have never been this low since we began tracking mortgage rates.

Sub 5 percent mortgage rates on 30 year fixed loans are literally unheard of, but we are now experiencing them. Couple that with a more affordable housing market and this may be an opportune time to consider picking up a rental property. Such a move may payoff for you in five years and beyond, once we get out of the financial mess we are currently in. A rental property near major transportation and employment hubs will set you up for when the economy turns around. Homes located in these areas will be in higher demand.


Since it is still a buyer's market, you can request that sellers (if they are not bank-owned properties) do some repairs before the settlement date. This will reduce the amount of work you will have to perform to get the house in rentable condition. Also, don't forget to perform a home inspection to access the condition of the house. It is now the buyer's turn and you should be as choosy as possible.

If you are a first-time home buyer who does not need a lot of space, you may want to consider purchasing a duplex or 2 family home. The extra rental income can never hurt and will allow you to depend less on outside sources of income, while turning your primary residence into an income producing asset.

We can't tell for sure if this is the bottom of the housing market, but either way, it is surely a great position to be in as a buyer.