The case for US Real Estate Investment
The mortgage crisis in 2007 and ensuing financial breakdown have created great opportunities in real estate in the US. High rates of forelosures depressed real estate market values below replacement value, and made rates of return in the high teens possible.
Investors with enough savings could profit greatly through capital gains or cashflow. When such low prices are available, the property selection and execution of the strategy needs not be particularly shrewd. It is our view that to succeed in real estate, it generally suffices to buy when prices are fundamentally low, and avoid and big mistakes.
Different type of properties are suited to different business strategy depending on whether the investor rental income or capital gains.
Investing for Rental Income
Investing for rental income is the easiest, as one just needs to find a property with an affordable rent, in an area with a healthy job market to be able rent it. Some properties are more likely to generate a profit
As of 17 Jan 2016, a 3 bedroom in Huron Ave in Cambridge (MA) rents for $2400 per month and would sell for an estimated 1.4mln. This gives a yield of 2%.
Investing for Capital Gain
Anecdotal evidence of often