For many years, rent-to-build projects have been a very hot topic for real estate investors. Many new options have come about and they have continued to grow as a hot topic. While you might want to get in on the rent-to-build investment craze, you’ll need to know how to choose the right market.
Real estate is all about location. If you don’t choose the best market, it might not be the right project for you. Let’s look at a few ways to make sure you can choose the right market for your rent-to-build project.
Look at Employment Trends
It only makes sense, if you’re going to invest in any type of rental property that you look at the employment trends for the market. Tenants need to have jobs so they can pay rent, and you need them to pay rent or the project won’t be successful.
Look for markets with large, sustainable employers offering lots of good-paying jobs. If there are several big employers nearby, it can help. People move to areas where they can find jobs. When the employment trends show a market has low unemployment numbers and plenty of good jobs, it might be a good option for you.
Population Growth
Another factor to look at when choosing a market for your rent-to-build project is the population growth. If an area is growing, there will likely be more demand for rental properties. This is good news for investors in these types of projects.
The market doesn’t even have to be the hottest or the fastest-growing. If it has sustainable population growth, this is often enough to support a strong rental market.
Current Rental Rates
When rental rates are on the rise, it spells opportunity for investors. This is a good sign you have a strong market for your rent-to-build project. When choosing to invest in any type of rental property, looking at the market’s rental rates is a smart idea.
Your Target Market
Maybe you have a specific type of tenant in mind for your project. It wouldn’t make sense to invest in a rent-to-build project in a market without your target audience. For example, if you prefer 55+ tenants, you probably don’t want to choose a market near a college campus.
Housing Availability
Is there already more housing in the market than needed? Maybe there is a big need for new homes in the market you’re considering.
When you look at housing availability, you want to use this factor to help make your decision. If the demand is high and the supply is low, it’s far easier to rent than if it’s flipped. Make sure the housing availability can support your project in the market you’re considering.
There are many things to consider when choosing a market for your rent-to-build project. Some of the best markets offered by Southern Impression Homes include Jacksonville, Florida, Lee County in Florida, and Fulton County near Atlanta. All of these markets offer the right factors for investors looking for good rent-to-build projects.