I always knew I wanted to invest in the US but never really thought of where. Of course most people from Quebec think of investing in a nice hot climate to get away from the winter mayhem. While I know I would want to spend some time feeling the ocean breeze in my hair, this is probably the last place I should buy property especially since demand is high and so are prices. After giving it some thought, I would only really spend maybe one or two months there leaving the property empty for at least 10 months. Insurance on vacant properties is extremely expensive not to mention the risk of it being vandalized. Then what do I do, rent it out to other snowbirds looking for a getaway for the months I didn’t reserve for myself. I want to be able to pick the ideal time of year for me, which is probably the same time everyone else wants it so it wouldn’t be available for potential snowbird renters. That would also mean lower revenues. I could probably rent it for spring break at higher rates but also the risk is higher. I’m not sure I want that kind of stressful business. Sure I want revenue, but I want it at a steady pace and not have to market and try to fill the space week in week out. So after doing some research and reading I came to the conclusion that it was much smarter to buy properties where I could rent it to tenants who will live there year round. This means steady income, property prices will be much lower and so will the risk. For the price of a vacation property on the beach I could probably buy 3 single family homes that could potentially net me 200-500$ per month each after expenses. That works out to 600-1500 per month or 7200-18000 yearly. Now here is the nice part. With that kind of net revenue even after taxes, I could still rent a pretty pad on the beach for 2 months from someone else and not worry about insurance, maintenance, lawn care etc…and if I don’t like the place I find a new one next year.
So my point is, find properties any place in the US where rents are good, properties are inexpensive, rehab them and rent them out. There are many places in the US where real estate is still cheap, in nice family oriented areas with good schools and low crime. Do some research, do your due diligence, reap the profits and enjoy life.
Watch for my next blog. How to pick a City to invest in.