Many individuals know that investing in Eagan single-family rental properties can be a wonderful method to grow wealth over the long term. But what do real estate investors make from year to year? It’s a great question and one that can have a lot of different answers. Let’s look more closely at how much real estate investors make and smart investors’ actions to optimize their rental income.
Average Investor Salary
On a national level, the average real estate investor salary is somewhere between $70,000 and $124,000. It’s crucial to remember that this estimate is based on all types of real estate investing, including house flipping and wholesaling. So it’s not a very useful estimate for single-family rental property investors.
Average Rental Property Owner Salary
When you concentrate on investors who buy and hold rental properties, the average salary for rental property investors swings to a range of $27,500 to $121,000 – an even wider swing than for investors overall. Part of what skews these numbers is that numerous rental property owners are small investors holding one or two rentals.
Once monthly property expenses are taken into account, rental income can be relatively low, especially for investors who are just beginning. However, as the upper end of the average salary demonstrates, some rental property investors make six-figure incomes along with the value of the property assets they hold.
Why Aren’t the Numbers More Specific?
It can be difficult to pin down how much a rental real estate investor makes because an investor’s income depends upon a range of various factors. From how much cash flow each property generates month-to-month to how many houses you possess and how frequently you purchase 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 want to build your way into a healthy salary as a rental property investor, there are measures that you can do to make things work. Some investors find it profitable to buy as many properties as they can each year. Others explore avenues for greater real estate deals that may 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 also imperative to ensure that you optimize the rental income for every property you already have. You may be losing out on additional earnings without even recognizing it. There are numerous practical ways to increase your rental income on an existing property. Enhancing your property’s condition might enable you to charge more rent, and as long as it is done inexpensively, it can be incredibly effective. It’s also vital to analyze whether you are charging enough rent and how to use local market assessments to set your rental rate.
If all of this has you getting a little overwhelmed, you may need to think about counting in Eagan 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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