Housing market dynamics have undergone significant change in the past 10 to 15 years. The housing market crash created a significant glut of foreclosures and bank owned properties. The home ownership rate among individuals and families remains at a low not seen in roughly a half-century. With millennials and others opting to rent single properties, real estate investment has become more of a norm in residential communities as compared to past generations.
While reality television provides several programs that focus on flipping homes, many individuals and small companies have been buying foreclosures, distressed properties and homes or condos in the normal housing market to hold as rental units. Some purchases require renovation to make the property marketable as a rental. With the disarray following the housing crash, many real estate transactions need legal attention to quiet title. These steps are often seen as a routine part of the real estate investment process.
Building new homes as rental units
Most recently, some investors, businesses and real estate investment trusts have decided to buy up undeveloped real estate and create entire communities aimed at the rental market. Creating a brand new community of rental homes often requires a larger initial investment per unit than purchasing existing single family homes that may need some remodeling or updating.
Nonetheless, the market for rental homes is seen in some circles as a solid business opportunity, according to the Las Vegas Review-Journal. Many students are racking up significant student debt while attending college. Established middle-income families often struggle to make ends meet, making saving up for a down payment difficult. These real-world factors are fueling the need for rental properties, according to Bruce McNeilage, who co-founded a real estate investment firm in Tennessee.
He says that landlords and real estate investors are often asked for short-term leases as some families plan on moving on to home ownership. Yet, many of the renters in 2014 had remained in their rental home under a month-to-month rental agreement for an average of seven years.
The real estate market in Las Vegas has been volatile for years. Investors in Nevada, including small businesses, married couples and partnerships often look to real estate to buy and hold for the purpose of generating rental income into the future. As with any real estate transaction, protecting legal interests is strong medicine for protecting assets and helping to ensure that the title to the property is clear.