Rent to Value Ratio: The Economics of Rental Property
Wednesday, June 6, 2012
Proteckservices.com -- Lately there has been much news regarding the Government Sponsored Enterprises (GSEs) and other private REO-to-Rental programs. With housing prices nowhere near the highs of a few years ago, can investors make good returns renting these properties until the market recovers?
The simple answer is “yes,” but it’s not that easy to find a property that can provide enough rental income to cover all carrying costs while also being easy to convert into the owner occupied market once the housing market has recovered. In this month’s Lessons from the Data we will review some due diligence considerations that affect the risk in making such an investment. (Full Story)