Have you considered an investment in Ohio University rentals? It can be an ideal supplementary income, especially for retirees, and with a proper strategy, could even produce a sustainable income of $50,000 to $90,000 per year.
Mark Ferguson explains in Investfourmore how his 16 rental properties earn him a $90,000 salary, after buying his first in 2010. The secret? Buy in when the getting’s good.
“You cannot buy just any property and turn it into a rental if you want to make a lot of money,” Ferguson advised. “You have to buy houses below market value with great cash flow to be a successful rental property owner.”
An Upward Growth Trajectory
In general, rental investments are growth investments, especially considering today’s rental and real estate market. Many Athens retirees depend on their income from uptown Athens rentals.
“Rents are always going to go up; the value of your property is almost always going to go up and most of your costs are going to stay the same, particularly if you assume a fixed mortgage rate,” Andrew McLean, author of Investing in Real Estate and Making Money in Foreclosures, told Bankrate. “Eventually, even if you’re only making a little in the beginning, you will watch your income climb over the years.”
Why Money and Age Don’t Matter
Don’t necessarily let your age or income be a roadblock. Deborah Christensen explains in the Penny Hoarder how she bought her first rental property at the age of 24 while she and her husband worked minimum wage jobs with a two year old in tow and substantial debt. Her $16,000 purchase of a two-bedroom, one-bathroom home with street parking has earned her over $100,000 over the last 20 years, substantially more than the original investment in the property on an annual basis.
Not that property investment is for everybody. It’s certainly not a get rich scheme. Forbes has a handy checklist to help you look before you leap.
Be Picky About Property
Deciding where you buy is one of the most important decisions, as added amenities come with added costs, but also increased rents.
On average, rentals with parking spots increase rent by $225 a month. While this may be great on paper, it could also add a headache in costs later on. Do your research. Everyone wants an apartment with a view or a house with a yard, but can you afford it?
Location, Location, Location
Probably the most valuable real estate lesson, and certainly connected to the previous point.
An apartment on Court Street will be worth more than a house on East State Street. That’s just a fact of life.
Court Street is closer to the action, so you’ll collect more rent via an uptown apartment, than say a house on Mill Street. That being said, these pricer rentals are harder to come by and will also set you back more money up front. If you can handle the burden of the high cost to purchase the property, then you’ll be primed to reap the benefits later on; otherwise, start somewhere more low cost, like a house on High Street.