Four Reasons Now Is The Time To Invest In Rental Property Ownership


A few months ago, I was in the incredibly fortunate position of receiving a call from my real estate agent. He’d found a unit about to go on the market that would make, he thought, a strong investment.

After weighing a number of options, I ultimately decided to purchase a different rental property in Boston. Here are a few of the factors that led to my decision, which I hope can be helpful to those of you who are considering whether you should buy a rental property as an investment this fall.

Mortgage interest rates are incredibly low again.

There have been very few times in history when we’ve seen 30-year fixed mortgage rates hovering around 3.7% and 15-year mortgage rates slightly above 3%. This makes the math of buying a rental property as a long-term investment very much in your favor.

You can also consider interest-only loans. The nice thing about interest-only is that the monthly payment goes down since you’re not paying down principle. This can make the unit more profitable, especially in the early years when most real estate investments have tighter cash flow constraints.

Housing is shifting toward a buyer’s market.

For the first time in years, the housing market is cooling. Odds are, you’ll be able to find a property in your area at a fair market rate, where you’ll at least be able to use the rental income to pay off your mortgage and still have some profits from the rent payments alone.