As economic conditions force many prospective home buyers to remain renters, it’s “welcome

news for owners of single-family rental homes,” according to the Wall Street Journal. Prospective

[territory] real estate investors intent on becoming landlords have been encouraged by recent trends. In

April, market data provider CoreLogic found that rents for single-family homes rose 14% from a year

ago, making it the 13th

consecutive month “in which rents grew at a record pace.”

Most St. Cloud investors do realize the extra attention that goes with being a landlord. Especially if

you decide to forego the services of a rental-management firm, it’s wise to become aware that reality can

sometimes upend assumptions that might seem to be ‘givens.’

Here are four expectations that experienced investors in single-family residences say would be wise

to adopt:

1. Expect changing conditions. This expectation may seem to be the most basic of common

sense principles—but that could only be true since the past few years have demonstrated it

in spades! Today’s investors will probably be astounded if conditions don’t change.

2. Expect to interact with a wide range of people. This could be considered a subset of

“Expect to work at it”—but both amount to restatements of one theme: successful

residential real estate investing is a hands-on enterprise. Advanced people skills aren’t the

most important ingredient investors regularly call upon, but if you feel at ease interacting

with all kinds of people—from tradespeople to professionals to a wide range of those who

will become your tenants—maintaining this form of investment can be personally as well

as financially enriching.

3. Expect losses. Maybe there won’t be many of these, but providing for the possibility of a

downturn is a practical necessity.

4. “A fast nickel is better than a slow dime.” This time-worn epigram is pithy but also

debatable (perhaps because there are multiple ways to interpret it). Some think that it’s a

way of saying that real estate’s long-term appreciation is the least important aspect of the

investment—and consequently, not to be factored heavily into your strategy. A more

appealing interpretation is that the value of knowing when to sell is a key investment skill!

Last month, the New York Times wrote about a “rental market that has been on a wild ride”—a ride

that the Washington Post called “a byproduct of limited supply and high demand.” Call me anytime to

discuss St. Cloud’s residential investment possibilities!

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

Multiple Office Locations To Serve YOU!

Saint Cloud 320-259-4554

Princeton 320-983-3555

Sartell 320-259-4554

Little Falls 320-259-4554

Minneapolis 763-565-2000

Hutchinson 320-455-9127

Litchfield 320-298-1140

Premier Real Estate specializes in MANY areas around Central MN including Saint Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, Saint Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, Saint Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center, Brainerd, Nisswa, Aitkin, Albany, Coon Rapids, Sauk Rapids and more!