Are you ready to shift your investment strategy towards real estate? There are great deals available right now. Here are the top 5 reasons why right now is the time to buy an investment property in Omaha!
Buying real estate is a great investment strategy, and the Omaha market is a solid investment choice. Instability in markets, government, and many communities are leading folks to shift their investments to more stable real estate markets in the middle of the country. Fortunately, there are lots of opportunities if you haven’t already shifted your focus! Keep reading to learn more about why this is a great time to invest in Omaha real estate, along with some tips to get you started!
Interest Rates Are Low
Using a traditional loan, like FHA, VA, or USDA guaranteed loan, is a great way to get started investing in Omaha real estate. You can buy 5-10 properties with traditional qualified mortgages, including multi-family properties with up to four units. Some loans require you to make it your primary residence, so read the fine print and know your plan before you get too far. Even if you move in for a while (some loans require as little as 60 days), you’ll be able to collect income on the other units while you do. If you are considering Omaha as your home, this way your tenants will pay for your living costs, while you build wealth and equity. Plus, you’ll see what its like to live here. That’s a terrific opportunity if your job now allows remote working. Finally, you’ll see firsthand the improvements that will best increase the value of the property.
Rentals Are In High Demand
All across the country, people are choosing to rent more than ever before. There are many reasons: saving a down payment, trouble getting financing, or not wanting the costs of being a homeowner. Especially among millennials, it’s more common to expect future moves and job changes. Increasingly remote working has shifted the focus from a home city to a more nomadic lifestyle based on the best place to live. Many choose to travel and explore the world before putting down permanent roots. There are many hip, urban neighborhoods that offer great cuisine, live music, and microbrew pubs while providing a safe and stable environment. Always research the neighborhood, but with rentals becoming an increasingly popular option, you shouldn’t have any trouble finding high-quality renters to live in your rental property.
The Economy Is Performing Well
A strong economy means more jobs, and Omaha has a solid history of stable growth, without the rollercoaster effect of major cities. Here, people have good jobs and can afford to pay your rent. Many locations are near major employers and the commute times are surprisingly reasonable here. Check the location for popularity and good access to transportation and shopping.
The Stock Market Can Be Volatile
Okay, I already mentioned this, but most stock investors are at least considering if putting all of their money in one place is too risky. The market is volatile by its very nature and we are seeing the fortunes of companies turning on a dime. It certainly makes sense to invest part of your money in reputable companies you trust, but it’s also wise to diversify your investments–And real estate is a proven way to do that. People will always need somewhere to live. Investing in housing can provide you with a stable income month after month and is pretty inelastic as the market goes up and down.
Hesitating Can Cost You
If you’ve talked to any active real estate investors, they will certainly say they regret not starting sooner. I share the feeling as I consider my own investments. Perhaps you’re intimidated by the process of buying investment real estate, but once you’ve done your research, you can be confident about making your purchase. The earlier you start your investment career, the sooner you’ll be able to enjoy your retirement.
How Do I Get Started?
1. Research
The first step to real estate investment is to do your research. Study the market, the economy, and the local demographics. Get a good idea of what you are looking for and what you want to pay. Are you looking for a single-family house in Omaha or something with several units? If you aren’t sure how to answer those questions, I’m happy to walk you through it. A great resource is The Millionaire Real Estate Investor by Gary Keller.
2. Know The Numbers
If you’ve talked to any investors, you’ll soon hear about many rules of thumb used by investors. While your priorities and style will define your approach, there are a number of calculations to help you know if an investment property in Omaha makes sense. You’ll want to learn about Cap Rate, ROI, GRM, Cash Flow, and the 1% rule (or 2% rule). When buying investment real estate, it ultimately comes down to the numbers above all else.
3. Work With a Professional You Trust
If you are new to investing or new to Omaha, it will be wise to find a professional home buyer and seller. Perhaps an Agent or a direct buyer like Chenoa Investment, but someone that offers great investment properties at a price that makes sense for investors. If you chose to work with us, our team will handle the legwork so you can purchase your new Omaha investment property quickly, without any hassles or delays!
