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What Are the Reasons Why You Should Invest in Rental Real Estate During a Recession?

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What Are the Reasons Why You Should Invest in Rental Real Estate During a Recession?

Are you thinking of investing in rental real estate but you’re not sure if you should invest during a recession?

The good news is that now is a great time to invest in rental real estate, especially for these reasons.

Reason #1 – Predictable Cash Flow

In times of economic uncertainty, it’s always nice to have predictable cash flow that comes in every month and when you hire a property management company like Rent Portland Homes – Professionals, you can enjoy passive income.

Reason #2 – Housing Is a Basic Need That Will Always Be In demand

Let’s face it, there’s nothing more ideal than to invest in something that addresses a basic need and that’s housing.

Since the beginning of time, housing has always been a basic need in the world, and that won’t change, especially as we now have more renters than owners in this country.

Reason #3 – Residential Real Estate Remains in Demand, Even During Recessions

One of the most common things that happen during recessions is for companies cut expenses and downsize to smaller buildings.

Recessions present peril for the commercial real estate market but residential and multifamily properties always remain in demand because of the simple fact that people will always need a place to live.

If your property is in an ideal location and it offers in-demand amenities, you can have peace of mind that it’s going to be an asset that produces great cash flow and ROI for years to come.

Reason #4 – Rental Real Estate Remains Stable, Even During Dark Economic Times

With rising interest rates, stock market crashes, and general economic uncertainty, rental real estate remains a stable asset that produces excellent ROI.

Investors everywhere love stability and predictability even if they also want a little unpredictability on the side, like what we’ve seen in the stock market recently.

Even though investors will continue coming back to the stock market so they can get huge returns, the reality is that rental real estate will continue to keep them investing in the rental market for years to come.

Reason #5 – You Can Live Anywhere and Still Invest in Rental Real Estate

Another ideal reason to invest in rental real estate is the fact that you can live anywhere in the United States and invest in rental properties in Portland, Beaverton, and the surrounding area, especially when you hire a property manager to professionally manage those properties.

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Things To Keep in Mind Before Investing in Rental Properties

Location, Location, Location – The adage is true when buying a single-family home for your primary residence and it’s especially true when investing in a rental property.

You must make sure that the property is first in a great location that’s near shops, stores, schools, and things to do in the area because, if the property is in. a less than ideal location, you can charge a lower rent but if the area doesn’t have much to offer, the tenants won’t stay long.

Before investing in a new rental property, take the time to research the area first to find out what other people who live there are saying about it.

This is important because you may learn that crime is through the roof, the schools are terrible and there are no decent grocery stores nearby, all things that you should keep in mind before buying a rental property.

Cash Flow – It’s like the old saying goes, ‘cash is king’, and the same is true with rental real estate

You want to invest in rental properties that are going to offer you plenty of cash flow to cover your mortgage, landlord insurance, and other costs.

Before saying yes to a new rental property, take the time to run the numbers and make sure that it all makes sense because there’s nothing worse than investing in a rental property that doesn’t offer enough cash flow.

Commit To a Buy and Hold Strategy – Even though you may have fixed and flipped properties in the past, with rental real estate you must be committed to a buy and hold strategy.

Buy and hold is important right now because it’s what’s going to help you to see a good return on your investment and build equity as we wait for the recession to end.

Cut Costs – Once you invest in a rental property in Portland Oregon, it’s also best to cut costs and do everything you can to make cost-effective improvements in your rental property that will yield excellent ROI.

Cutting costs is important because it will also help you to be prepared for possible years of recession since you’re going to have an efficient rental that will produce consistent ROI while other owners see their properties and investments fail.

Hire A Property Manager – Last of all, but most important, don’t hesitate to hire a property manager to professionally manage your property.

Our team will help you to get the most ROI from your property possible so that you can enjoy passive income while weathering the economic storm that the country is currently experiencing.

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How Long Will the Recession Last?

Sadly, this recession is only just beginning, and it could last for years as the government is not eager to slow down on spending or take the necessary steps to get the country back on the right track economically.

From tenant screening, maintenance, customer service, and support, to rent collection, you can count on us to offer all the property management services that you need to have an efficient rental property that continues to produce excellent ROI every month.

Thankfully, with rental real estate, this is a win-win for investors because it means that they can continue investing in a stable asset that will produce ROI for years to come.

Contact Rent Portland Homes – Professionals

To learn more about the Portland property management services our team can offer you, connect with us today by calling (503) 447-7735 or click here to connect with us online.