“The lending process has become harder and harder,” Nicole Bronstrup, F.C. Tucker, said. “There are less zero money down options and more buyers come to the table with student loans, credit card debt, and poor credit. Renting, while they work on their finances, is a more practical option for them than buying.”
Millennials, raised during a steady economy and a housing boom, found themselves graduating from college in a nation coming out of a recession, while saddled with crushing debt from earning their higher education. Combine that with low credit scores, at a time when restrictions have become more stringent, and the pool of qualified homebuyers has significantly dwindled.
Renting allows this demographic looking to nest the opportunity to get the homes they want, even if they don’t qualify for a mortgage yet. And many are taking advantage of the booming rental market as a much more desirable option than moving back in with Mom and Dad.
With the increasing demand for rental properties, investors are finding that expanding their property portfolio has led to solid business growth and a steady increase in cash flow.
“In 2012 and 2013, American Homes for Rent (AH4R) bought around 2,000+ properties in Indiana,” Craig Opsal, Keller Williams, said. “Many of the homes were bank-owned or foreclosures. The demand for rentals was increasing, with the influx of people moving to the state for work and those suffering from poor credit from the recession. Now AH4R owns over 3,000 single-family homes in Indy, alone.”
They aren’t the only ones. Many U.S. cities are seeing a quick increase in the rental market. REALWEALTH Network describes the best places to buy rental properties as having three main factors in common: job growth, increased population, and affordability. As the economy continues to recover and gain confidence, many areas are seeing a rise in all three.
Currently, the top U.S. cities to find high cash flow rental properties at low prices are: Orlando, Tampa, Jacksonville, Cape Coral, Pittsburgh, Huntsville, Houston, Cleveland, Cincinnati, Chicago, Indianapolis, Kansas City, Detroit and Atlanta.
While investors, looking to take advantage of the climbing demand for rental properties, continue snatching up homes on the market to rent, many have found that credit restrictions or traditional bank requirements have been obstacles for obtaining the properties they want and as quickly as they become available. Rental Home Financing understands the gap in the market and is here to help provide liquidity in the marketplace.
Bottom line – “The rental market forecast is exciting if you are an investor looking to enter or expand your existing rental business we remain optimistic for the foreseeable future.as one of the largest non bank lenders, we have several options for landlords and investors,” Doug Goins, National Sales Director and General Partner of Rental Home Financing , said. “Investors looking to take advantage of the rental investment market aren’t restricted with our lending products, like they are with the traditional banks. Simply put,We understand how the landlord businesses works. Our unique rental property loans help expand rental portfolios and grow long term wealth, without facing underwriting hurdles found with other lenders.”
Landlords and investors, house flippers and builders alike, looking to capital they need, quickly and easily, are able to bypass the headaches of traditional, non-bank lenders with RHF’s lending platform.
“From blanket mortgages for recapitalizing on free and clear portfolios of single-family homes to restructuring leverage into compact, highly-efficient loans with the lowest investment property mortgage rates, we’ve got the solution,” Goins said. “We’re more than just a lender; we partner with our clients to ensure long-term wealth and success.”,
Interested investors can apply online, or call 888-375-7977 to speak with an expert about their unique needs, to make sure they get a piece of this quickly growing market.