Andrew Bahr, a structural engineer who lives in Queens, recently bought a property in Atlanta that he rents out for a nice $400 profit each month. Bahr can use the money, especially for rent for his own place.
The New York Times reports that small-time investors are using services, such as HomeUnion, to buy, renovate and rent properties, even ones far away. In Bahr’s case, he has never visited the property he owns, and he doesn’t know the people who are renting it. HomeUnion is in charge.
The company estimates that, on average, investors who put down 20 percent on a property and hold it for 15 years can expect annual returns of 11 to 19 percent, a figure that includes rental income, appreciation and increased equity.