Today’s housing market is so competitive and pricey that even those homeowners who might want to move up to a larger home are staying put. They either can’t find or can’t afford what they want. A new strategy, however, is becoming increasingly popular — in order to afford that new home, keep the old one.
The number of investor-owned properties continues to rise, but the "investors" are not all big companies or landlords with multiple properties. More and more, they are just current owners using today’s very lucrative rental rates to pay for a bigger home.
Liz and Kevin Chamberlain, both in their mid-30s, needed more space than their Washington, D.C., home could offer, after the birth of their first child. They thought about renovating, but the cost to expand was incredibly high, and the footprint of their Capitol Hill row house was limited anyway. Their neighborhood, however, is commanding very high rents.
“We ran the numbers. I literally made a spreadsheet and ran all the different options,” said Liz, who purchased the Capitol Hill home several years ago, before she was married. “It made the most financial sense for us to keep our house in D.C., rent it out and buy here.”