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Tuesday, June 17, 2014

chat about cash buyers and maximizing rental income

So who are these cash buyers?
“Strict lending standards combined with low inventory continue to give the advantage to investors and other cash buyers in this housing market,” said Daren Blomquist, vice president at RealtyTrac. “The good news is that as institutional investors pull back their purchasing in many markets across the country, there is still strong demand from other cash buyers — including individual investors, second-home buyers and even owner-occupant buyers — to fill the vacuum of demand left by institutional investors.”
So to help out those newly minted landlords and the mom-and-pop operations that are growing, here are five ways to maximize your returns on rental housing, courtesy BiggerPockets blog.
1) Decrease vacancy even if it means cutting your rent
Maximize profits by minimizing vacancy sounds obvious, but the strategies to do it are not easy.
Every month of vacancy costs you 8.3% of your potential yearly revenue, so you would be better off renting every property one month faster for 5% less rent, two months faster for 10% less rent, and so on.