It’s not hard to believe that an effective way to double your wealth is by investing in single-family rental properties. But, just how much do real estate investors earn in a year’s time? It’s honestly a valid question to ask, and different people may give you different answers. Let’s go over a few key details as to how these real estate investors can gain optimal profit through their rentals.
Average Investor Salary
On a national level, the average real estate investor’s salary is somewhere between $70,000 and $124,000. Take note, though, that this is based on different kinds of real estate investing, including house flipping and wholesaling. So, these approximations might not accurately represent single-family rental property investors.
Average Rental Property Owner Salary
When you focus on investors who buy and hold rental properties, the average salary for rental property investors changes to a range of $27,500 to $121,000 – an even wider swing than for investors overall. A big factor as to why these numbers are skewed is that many rental property owners are investors who own one or two rentals.
For investors who are just starting, rental income is just enough, especially after taking out monthly property expenses. Still, as shown in the upper category of the graph, there are rental property investors who earn six-figure incomes — that is on top of their property assets.
Why Aren’t the Numbers More Specific?
It’s quite difficult to tell just how much a rental real estate investor makes because there are just too many factors to consider. Like looking at the cash flow brought in by each property, to the frequency of buying more property, as well.
Real estate investing is a local business. Hence, most of the yearly income of the investor will be defined by the local market. The average salary for a real estate investor in North Carolina is about $99,000, whereas, in New York, it’s over $136,000.
How to Increase Your Rental Income
Do you want to raise your salary as a rental property investor? Here are a few ways you can do that. There are investors who say that it’s profitable to buy as many properties as you can each year. Others will tell you to go for better real estate deals that provide higher returns. Other investors may branch out and invest in up-and-coming markets, hoping to capitalize on growth in new markets.
It’s key to make sure that you are able to optimize the rental income for every single one of your properties. For all you know, you might be missing out on a ton of additional earnings! There are so many efficient and useful ways to increase your rental income. Ensure the property is in perfect condition so that you can charge more rent. The best part is, keeping your property in good shape doesn’t have to cost a lot. Also, use your local market assessments to gauge whether the rent you charge is enough or too steep.
If all of this has you feeling a bit overwhelmed, you may want to consider bringing in Concord property managers who are local market experts and can help you make the most of your rental properties. To learn more, contact us online today.
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