The single family rental market is hot here in Colorado. Most renters prefer to rent a house versus an apartment. Renters like the amount of space and the privacy that renting a home affords them. According to a HousingWire.com article citing research by Moody’s Analytics, there has been a sharp increase in the rental market for single family residences due to continuing fallout from the foreclosure crisis and the low home ownership rate related to this. Further, there is an influx of people moving to Colorado for various reasons including business development (i.e. Google) and the simple fact that Colorado is a great place to live!
How can you capitalize on this? You can keep your current home as an investment property. Rental rates are at a premium due to high demand and there are many that are actively seeking a home to rent that can’t find one. This will make it easier to find a renter and charge a rate that may allow you to make a monthly profit while someone else pays your mortgage.
So if you’re in a position to upgrade to that house you’ve been wanting while keeping your current home, this could be a great investment opportunity. An investment property can be a great addition to your retirement portfolio. Talk with a local lender to see if you qualify for this option.