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Rental properties still the most advantageous and safest investment

Philip A. Raices 2024 DC Convention – Copy

So, today’s question is, where is the best and safest place to park your investment dollars?

I firmly believe it is rental real estate. It’s a long-term play. Over the years, your tenants will continue to pay down your mortgage and potentially provide some positive cash flow monthly.

However, you will have to make some effort or hire someone to assist you in simplifying the process.

In my professional opinion, there is much less uncertainty with the right real estate investment than playing the stock market.  The stock market has been so volatile and unpredictable that one never really knows where it will be heading going forward.  Now that the tariffs against China have been reduced from 145% to 30%, paused for a period of 90 days, things might look very rosy indeed.

However, who has the crystal ball to predict what will happen after that period of time?  You have to determine your risk tolerance in whatever investment path you choose.

I do believe the tariffs were a ploy to depress the stock market, allowing certain high-net-worth individuals to profit substantially and buy specific stocks that they sold at a high point, only to repurchase them when they got crushed, losing trillions of dollars of market value for average Americans whose 401Ks and pensions were severely and still impacted.

It’s a losing game for so many who are unable to control the market.

Investing wisely in rental real estate provides greater control over your assets than the stock market.  Finding the right property does take some time, analysis, and crunching the numbers.

Look for positive trends, such as increasing populations, job growth, school rankings, commercial construction, infrastructure improvements, etc. You are not alone, as a qualified, knowledgeable, and expert realtor can guide you through the search process. He or she can break down the costs to ascertain the ROI and NOI.

Paying outright for your purchase can give you an advantage, as “cash is still king.” If financing is available, your mortgage person can also provide valuable information to assist you in determining what will make sense in your brain and cents in your bank account.

In 2025, better returns are predicted to be achieved in upstate New York (Syracuse, Buffalo and Albany), Florida (Tampa and south Florida), where there is no state income tax, Tennessee (Nashville), Texas, also, no state income tax, and even California (Los Angeles, Sacramento, San Diego, San Francisco Bay area) and Hawaii (Honolulu, Maui, The Big Island, Kauai) for a very strong vacation market.

These markets have strong job and economic growth. Single-family homes usually provide longer-term tenants with greater stability and fewer turnovers.

It is crucial to do your due diligence to determine the risks. In 2025, these markets are very strong and show excellent returns. You have to speak to your CPA and financial planner and see if this fits your portfolio of investments.

More info here: The 11 Best Places to Buy Rental Property in the U.S.

Make sure you converse with knowledgeable, expert, and successful local realtors who will guide you through the process from start to finish. Most importantly, ask for comparable sales to make certain that your offers are in line with what investors are paying.

Make a list of questions to ask to gain the valuable knowledge that is absolutely necessary to become a wise investor.

If you will not reside nearby, you can also ask who they use as a local manager of the property.

Proceed carefully and thoughtfully when investing. As the cost of residential real estate continues to increase due to a severe lack of inventory, many potential purchasers are being shut out of the market. They will opt for rentals, especially in locations with above-average school districts. It’s location, location, school district.

Philip A. Raices, Broker Consultant of Turn Key Real Estate,

3 Grace Ave Suite 180 in Great Neck, NY  11021-2415

For a free 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns, call

(516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com  Search properties at your leisure and convenience at:

https://WWW.Li-RealEstate.Com

 

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