Savings and CD interest rates are the lowest in years, and the stock market is in an iffy position. It could even suffer a second dip.
So where can you invest your money and get a decent return? Consider buying a home and renting it out. In the United States, the average rent is at its highest level in history and going up every year.
Writing in Kiplinger Personal Finance, one veteran developer and house rehaber says now is the time to strike. You could buy a $120,000 house in the city for $42,000. Add $10,000 for repairs and renovations and, depending on the property, you can rent it out for up to to $1,000 a month.
Some of the rehab costs could be saved if you can patch a few cracks in the walls and do some of the cleaning and yard work yourself.
A rental property offers a big opportunity for people with some time to spend on it, such as a retiree, a teacher who has the summer off, or a man or woman who works part time.
Of course, the rehab only takes place for a month or two. Many people with full-time jobs are willing to spend weekends and some evenings on it in order to increase their monthly income after it’s rented.
One man with good credit was able to finance the purchase price of a home and improvements at 7.75 percent interest. On that particular house, with little money of his own invested, and after paying for the financing and expenses, he makes a profit of $430 a month.
Because he owns eight other financed properties with various levels of profit, he makes a very nice living.
While being a landlord is not as easy as signing on the dotted line, for many people it is a great opportunity to increase their net worth and their monthly income.