The vast majority know that investing in North Port single-family rental properties can be an excellent way for creating wealth over the long term. But what do real estate investors make from year to year? It’s a wonderful question and one that can have a lot of different answers. Let’s take a closer look at how much real estate investors make and what efforts smart investors take to optimize their rental income.
Average Investor Salary
On a national level, the average real estate investor salary is somewhere around $70,000 and $124,000. It’s important to note that this estimate is based on all types of real estate investing, including house flipping and wholesaling. So it’s not a very helpful estimate for single-family rental property investors.
Average Rental Property Owner Salary
When you narrow your attention on investors who buy and hold rental properties, the average salary for rental property investors ranges from $27,500 to $121,000 – an even wider swing than for investors overall. Part of what skews these numbers is that several rental property owners are small investors with just one or two rentals.
As soon as monthly property expenses are taken into account, rental income can be quite modest, especially for investors who are just beginning. But as the upper end of the average salary indicates, some rental property investors make six-figure incomes on top of the value of the property assets they hold.
Why Aren’t the Numbers More Specific?
It can be challenging to pin down how much a rental real estate investor makes because an investor’s income depends upon the scope of various factors. From how much cash flow each property generates month-to-month to the number of properties you own and how often you acquire more.
Real estate investing is a local business, so the local market will also significantly determine yearly investor income. 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
If you are hoping to develop your path into a healthy salary as a rental property investor, there are things that you can do to achieve that goal. Some investors find it profitable to buy as many properties as they can each year. Others explore avenues for better real estate deals that may give higher returns. Other investors may branch out and invest in up-and-coming markets, hoping to capitalize on growth in new markets.
It’s also critical to ensure that you optimize the rental income for every property you do own. You may be missing out on additional earnings without even noticing it. There are several convenient ways to increase your rental income on an existing property. Enhancing your property’s condition could allow you to charge more rent, and as long as it is done inexpensively, it can be very effective. It’s also imperative to evaluate whether you are charging enough rent and how to use local market assessments to set your rental rate.
If all of this has you feeling a bit overwhelmed, you may need to try involving North Port 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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