If you live in or around North Texas, it is the perfect time to think about becoming a first-time landlord. Don’t believe me? Then just look at the growing number of North Texas residents that are buying homes only to rent them out to other people.
In the aftermath of a mortgage crisis, it has become increasingly difficult to get approved for a home loan. In response to that, people who cannot afford to buy a new home are looking to lease one instead. Those individuals fortunate enough to be able to afford to do so are looking to make some extra cash by renting out homes they buy as opposed to living in them.
Realtors are saying that homes for rent are not staying on the market for very long and are often leasing within weeks or days of being offered. The higher demand for rental properties is what inspired John Eklof, a native of Dallas, to get interested in the new experience of becoming a landlord. He purchased a duplex a couple of months ago to rent out one unit and live in the other. Elkof’s personal realtor did some calculating and he is confident that this business venture will be profitable.
In comparing the statistics of July 2010 to July 2011, there is a 6% increase in rental units available in North Texas according to the Multiple Listing Service. In addition to that, the average rent is also up to $1,507 a month, a 4% increase. According to Eklof, “The silver lining on the dark cloud of the housing problems is that it has gone up. And it looked like a good time to get involved in that.”
“If you can get anything at 4% increase on whatever you own, that’s a pretty good investment, return on investment,” stated Ebby Halliday Realtor Claire Krieger. Krieger also stated that in Dallas, the hottest areas at the moment for sales and leasing are Park Cities, University Park, Oak Lawn and North Dallas.
Source: NBC DFW – More North Texans Become Landlords