Boise ID Metro
Real Estate Investment Analysis
If you are considering investing in real estate in Boise or SW Idaho, I wanted to share with you some thinking and number-crunching that goes into buying an investment property.
The Ultimate Goal: Achieve the Largest Return on the Smallest Investment
Positive Conditions to Capitalize On Right Now:
#1 The best reason to invest is interest rates near once-in-a-lifetime lows. Lock it in for 30 years of profits!
#2 Did you know the home ownership rate is at a 40+ year low? Home prices should generally rise as this rate recovers.
#3 Boise Metro real estate markets are among the hottest in the country, driving strong demand and prolonged by low inventory.
#4 Boise area home prices are low compared to most western cities and the western regional average.
#5 Overall supply of homes in Boise Metro housing markets remains well below normal and prices should continue to rise above historical norms in 2021.
I firmly believe the safest real estate investment is a single-family home held as a rental for long-term appreciation. Multi-fams can be much harder to sell when the market turns down or interest rates rise dramatically. Homebuyers outnumber investors 5-1 for resale. When working as a buyer's agent to find good rental property, my goal is always a below-market buy in a decent location.
Targeting the largest pools of potential renters and buyers can greatly help in resale liquidity and keeping vacancy low. For example, a single level works for all buyers, while a 2-story won't. A home located in central Boise would appeal to more people than way out on the fringe. Many more people want/need 3 bedrooms, compared to 2. The lower the price, the larger the pool of renters/buyers that can afford it, but too low attracts low quality renters.