{"id":6412,"date":"2025-03-28T08:02:25","date_gmt":"2025-03-28T12:02:25","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6412"},"modified":"2025-03-28T08:12:41","modified_gmt":"2025-03-28T12:12:41","slug":"real-estate-investors-are-the-best-days-behind-us-or-ahead","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/real-estate-investors-are-the-best-days-behind-us-or-ahead\/","title":{"rendered":"Real Estate Investors: Are the Best Days Behind Us, or Ahead?"},"content":{"rendered":"\n
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With the price surges we\u2019ve experienced in recent years, some real estate investors<\/a> are selling their properties. Will new investors come to fill the vacuum?<\/p>\n\n\n\n

Maybe not so many \u2014 now that some of these properties have become prohibitively costly to buy, finance, and insure. That said, there are some pockets where small rental businesses can tap into profit.<\/p>\n\n\n\n\n\n\n\n

Turning a Profit Is Getting Harder Out There.<\/h2>\n\n\n\n

Today\u2019s investors need a heaping dose of patience or luck to eke out a profit. As we noted in January:<\/p>\n\n\n\n

For those who buy when the market is rising, a home appreciates in value effortlessly. After holding the home five years or more, these owners build up enough equity to consider selling at some point, covering all the closing costs and still profiting from the sale. But over these next five years? It won\u2019t be so easy.<\/em><\/p>\n\n\n\n

These days, that five-year period is sounding quaint. Properties that once took five years to pan out could now take a decade or longer. Wall Street companies<\/a> have taken over so much of the landscape that small investors get sidelined if they can\u2019t renovate. And renovation materials are rising in costs, due to inflation and trade wars. This means investors have to cope with shortages and delays when they need wood products, wiring, appliances, fixtures, and installation work.<\/p>\n\n\n\n

Then there are the rising costs of property taxes.<\/p>\n\n\n\n

So, some investors are now pulling back from the market, preferring to put their cash into high-yield bonds, funds, or savings accounts. They\u2019re hoping to turn a profit without having to deal with owner-renter dynamics and building maintenance.<\/p>\n\n\n\n

They have a point. Real estate is a long game. And even if patience is your super power, you might not be so keen on the possible downsides. Like the market fluctuations. Or the possibility that a renter might create extra work or fall behind in payments. Local government rules. The commitment of time and attention.  <\/p>\n\n\n\n

Every now and then, even good renters run into financial pressures they can\u2019t overcome. Renters who ghost owners or fail to pay are not typical. But these aren\u2019t typical times. For the investor with just one or two units, the risks are serious.<\/p>\n\n\n\n

How Does a Small Rental Business Succeed? Location Is Key.<\/h2>\n\n\n\n
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All of the above acknowledged, are there promising areas where small rental businesses can succeed? Realtor.com<\/em> believes there are significant profits to be made in the Sun Belt states at this time. The publication, issued by the National Association of REALTORS\u00ae, points to a set of \u201ctop 10 markets for 2025<\/a>\u201d and highlights profit potential in these locations:<\/p>\n\n\n\n