Wondering how you can profit from real estate right now? Worried it’s too late to buy real estate? Sure, prices are high, as you can see in the graph below:
But mortgage rates—while on the rise since 2020—are still historically low, as you can see below.
Those elevated prices and rates are pressuring the housing industry, making sellers reluctant to move and preventing some buyers from purchasing their homes. But for real estate investors, those two factors are increasing their cash flow. Rental rates have continued to spike, with the highest prices in areas like San Jose, California, New York City, Boston, and San Francisco. Zillow reports that rental prices are up in 48 of the 50 biggest metro areas in the country.
A recent study analyzed the best states for real estate investing, with Kentucky, South Carolina, Indiana, Georgia, and Delaware scoring the highest based on various criteria. Rental properties offer a significant opportunity for cash flow, with methods like the Rule of 72, the 1% Rule, Cash-on-Cash Return, and more to assess investment potential.
Alternatively, investors can explore Real Estate Investment Trusts (REITs) for a passive real estate investment approach. REITs provide high dividend yields and the opportunity for capital appreciation. Consider options like AvalonBay Communities Inc., Equity Residential Properties Trust, and Invitation Homes Inc. to profit from real estate in today’s market.
Don’t let negative headlines deter you—profitable opportunities in real estate are still within reach.
