Maximizing Your ROI: A Guide for Real Estate Investors 07.07.2023
Real estate ROI, or return on investment, measures the profit earned on a real estate investment after all costs of the investment are deducted.
Your real estate ROI is a critical metric that every real estate investor should know and compute regularly, yet many fail to do a real estate ROI calculation when determining whether to purchase, or continue to hold, an investment property.
Welcome to Towerpoint Wealth, a trusted boutique wealth management firm in Sacramento, California. Join our President, Joseph Eschleman, as he unravels the current state of the Sacramento housing market. With a scarcity of available homes, the market is grappling with challenges stemming from inflation and higher interest rates, making it harder for borrowers to obtain loans. This situation has led many homeowners with low mortgage interest rates to hesitate when it comes to selling and moving. Interestingly, the limited housing supply has resulted in increased demand, which has in turn supported home prices, despite the overall increase in the cost of borrowing.
Click below to watch Joseph’s discussion with ABC10 News Anchor Lora Painter, where they explore the implications for renters and investors in the current market climate. Renters may have experienced landlords taking advantage of the situation by increasing rents. On the other hand, investors find the market dynamics attractive, as rising rents lead to increased cash flow, real estate ROI, and higher overall returns on investment. Additionally, homeowners considering retirement or downsizing may find it advantageous to retain their homes and convert them into investment properties. With the attractive mortgage rates secured in the past, homeowners can benefit from ongoing rent increases while enjoying the benefits of the previously obtained low-cost borrowing.
By analyzing the numbers, doing a real estate ROI calculation, and considering factors such as rent versus upkeep costs and potential home price appreciation, individuals can make informed decisions regarding their properties. Despite the challenges, the Sacramento housing market presents opportunities for homeowners, renters, and investors. Don’t miss this enlightening discussion, meant to illuminate the recent developments in the greater Sacramento real estate market and their impact on individuals like you.
Are you searching “certified financial planner near me?” You’ve found Sacramento independent financial planner Joseph Eschleman, CIMA®, as well as certified financial planner Steve Pitchford, CPA, CFP®, and our entire independent wealth management team.