Investing In Rental Homes? What Matters and What Does Not

As a real estate investment guide, I get a lot of questions about the dos and don'ts of investing. People ask me questions on our quarterly expos as well as on social media – and you can subscribe to my YouTube channel and follow me on Instagram, by the way. One of the questions I get asked is, whether investors should buy subsequent homes in the same location as their first property purchase. Should they buy their second and third homes and so on in the same area? And my answer to them is, it doesn’t matter!

Why it doesn’t matter.

Now if you buy one home and then you buy another in the same location – the same city, say, it can be convenient. You already are in touch with the brokers, you already work with the property management people, and you're already familiar with the mortgage company that did your paperwork. So you know the ropes and you're familiar with the people. Getting a second and third loan may well be easier when the lender has already advanced one loan. This is convenient and the familiarity is comforting for you as an investor.
So, I'm not saying there are no advantages at all. There are advantages but they are not significant in terms of any financial advantage they will bring you. Where you buy your second, third and fourth homes – this is not going to make much of a difference to your retirement riches in the end. There are other far more significant factors that will make much more of a difference to your financial outcomes in the longer term.

What really matters.

Number one is the 30-year fixed-rate loan. Yes I know I've said it before, but I’ll say it again – it is a gift and one that you cannot afford not to take. This is the loan that you pay off over 30 years at a fixed rate of interest. So if you're repaying X amount today, you're still only paying that X amount ten, twenty years later. By then, inflation is going to make that amount seem puny in comparison to what it seems today. Meanwhile, the rental income will help pay off the loan.
Number two is the sort of investment you make. Quality single family homes in good areas have the best chance of getting top dollar rent. So that is what you're going to want to look at when you invest in real estate. If more than one of your investments is in the same geographical area, well and good. If not, that is no problem either! So long as you have the important aspects sorted, this doesn’t really matter.
To know more, watch this video or listen to this podcast. 
If you would like me to address a particular issue in one of my videos or podcasts, be sure to let me know. Just drop us a line at info@icgre.com
At ICG Real Estate, we are all about helping you build a secure financial future with savvy real estate investments that are going to fetch you the best possible returns. We crunch the numbers, look at growth trajectories and weed out areas that don’t make sense. We then facilitate your investment by giving you access to our network of developers, property managers, financers and so on.
This helps you and also helps strengthen our networks. So really, it's a win-win for all concerned. However, it is important to invest based on sound market insight and not get carried away by what is trendy or just doing what everyone and their cousin are doing right now.

Territories that just don’t make sense right now.

There was a time when territories like Boise (Idaho), Baton Rouge (Louisiana) or Salt Lake City (Utah) made a lot of sense for real estate investors. At the time this made sense for people who wanted to buy, bide their time and reap good profits ten, fifteen or twenty years later.
Right now, however, these territories aren't a good idea at all. There are no properties to buy and not even any waiting lists you can get on. Each time someone puts up properties to sell, buyers seem to be jostling to buy. Common sense tells us that we don’t buy in a sellers’ market. 
So where do you buy?

The ICG Advantage.

Now your financial aims may be varied – you may want to finance college for your kids or even grandkids. You may want to ensure a comfortable, even luxurious retired life. Or you may just want to have a financial fallback of sorts. Whatever your aims, right now, investing in single family homes in carefully chosen real estate markets seems to be your best bet. Not only does ICG Real Estate examine future growth prospects, but we also examine numbers that make sense in terms of rent – a passive income source for our investors.
Like I said, it’s a win-win for our investors – who pay nothing extra – and for us because it helps us strengthen our networks. You can contact us to set up an investment meeting, or ask us to send you exclusive property listings. You can also attend our quarterly Expo events where we talk about real estate investments and have a lot of fun! We even have teams present from the markets that are good to invest in to share their insights with you.  Reach out to us if you have a question or if you're ready to take the next step to safeguard your financial future – we can tell you how!
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ICG uses single-family home investments, bought in advantageous locations and the best U.S. markets. We enable you to enjoy the clout that comes from purchasing a multitude of houses, even if you only buy one.
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