What is the hardest part of being a Landlord? If you have good tenants, the hardest part is staying on top of maintenance and dealing with the calls of a broken toilet late at night.
If you could avoid that headache, buying more rental property would be an easy choice, right? The best solution is to purchase newer rentals, to minimize the cost and frequency of repairs.
Just one problem: finding good newer property to purchase! Most newer single family homes sell at a price that is not cost effective for rentals. Individual townhomes are not an easy solution, as many condos and townhomes restrict rentals. If you do find townhomes that are not restricted in rentals, then the condo/HOA fee can make it less efficient of a rental.
Solution? Find a community and build some rentals yourself. This is easier than you think. If you have a good builder partner, they can handle the work, while the investor handles the capital.
If you are interested in working on a development project, the time to build that stock is now. During the recession, building almost ceased, so now there is pent up demand for new housing stock in rentals and sales. This provides the investor the opportunity to enter a hot market and build future appreciation.
The reasons Central PA makes the ideal place for an multi-family development right now:
- Cap rates are higher in smaller markets. Contrast a CAP Rate of 6.36% (10 Year average) in Philadelphia with 6.91% in Lancaster and 7.34% in York County
2. The demand for rentals are strong. With many manufacturing and supply chains housed in the area, jobs are plentiful which boosts the housing demand.
3. A low inventory of newer units means the developer will be rewarded when time comes to sell with a healthy investor demand.
For a list of options to build rentals in Central PA, and builder partners, contact us for further details. Call Naomi at 717-819-2825 or email email@example.com