FINANCIAL FRIDAY: Thinking about investing in the rental market – WAFF

byJohnny Syntax -September 02, 2022

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HUNTSVILLE, Ala. (WAFF) – Home prices rose 27.4% over the past year. If you are looking at investing in rental properties, it’s a growing market. This is a great market to invest in with a median rent of $1,000 and a consistently strong body of prospective renters, according to Redstone Family Realty.

Teresa Pearce and Kristen Hight with Redstone Family Realty said something to keep in mind is a 1031 exchange.

They say this is a real estate investing tool that allows investors to swap out an investment property for another and defer capital gains or losses or capital gains tax that you otherwise have to pay at the time of sale. Small investors can use it. They say this allows you to sell rental houses that need improvements and buy another in better condition.

Another option if you’re in the market to rent a house is Home Partners of America. Pearce and Hight say they’ve recommended this to many of their clients that are trying to buy a home with an FHA or VA loan. This allows you to rent the home until you get your finances in order and later purchase the home.

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Be sure to tune in at noon every Friday for WAFF 48′s “Financial Friday” segment.