Overleveraged Investors.
Many investors over the last few years got pretty greedy, they used creative methods to pull out every once of equity in their properties, this meant that they had more cash in the bank, but less cash flow every month.  This is a risky way to play in the real estate rental market, many got burned.  Normally investors in rental properties have plenty of cash flow to act as a buffer against un-occupied homes or and unexpected loss of rental income, but since many investors gave up their cash flow for equity payouts, many ended up in foreclosure. 

 

Rental Opportunities.
Since many of these risky type of investors ended up getting foreclosed on, banks and investors are often forced to short sale rental properties that still have renters in them, this means that the new buyer, which could be you will get a property at a discount, which has a monthly cash flow, and often a renter already paying the bills.  It can be a pretty sweet deal, so long as you don't make the same mistakes as the previous owner.

 

Discounted Rental Properties.
Since the decline in the real estate market, some areas lost value faster than others.  North Minneapolis is a great example, properties a few years ago sold for $150,000, but now sell for $75,000. In this area rents have not felt the same decline, this means that you can get nearly the same rents you could in the past, if before you could cash flow on a $150,000 home, you will have much more cash flow on the now $75,000 home.   There are many areas across the Twin Cities that offer much higher rental values than home values. 

 

Contact us.
If you would like to begin buying short sale rental properties or discounted rental properties then you should contact us, we have compiled lists of properties that meet this criteria.  We can help you find properties listed on the MLS as well as ones that are not.  Please feel free to contact us using the form on the contact us page any time, we look forward to hearing from you.