Numerous individuals understand that investing in Fairfax single-family rental properties can be an excellent method to generate wealth over the long term. But what do real estate investors make from year to year? It is an excellent question with a wide range of possible answers. Let’s take a deeper look at how much real estate investors make and what measures smart investors take 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 necessary to keep in mind 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 focus on investors who buy and hold rental properties, the average salary for rental property investors changes 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 many rental property owners are small investors, owning one or two rentals.
Once monthly property expenses are taken into account, rental income can be fairly minimal, especially for investors who are new in this business. But as the upper end of the average salary illustrates, some rental property investors make six-figure incomes in addition to the value of the property assets they hold.
Why Aren’t the Numbers More Specific?
It can be tough to pin down how much a rental real estate investor makes because an investor’s income depends upon a variety of unique factors. From the amount of cash flow each property generates month-to-month to the number of properties you possess and how often you purchase additional properties.
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
There are steps you may take if you want to work your way up into a healthy salary as a rental property investor. Some investors find it profitable to buy as many properties as they can each year. Others explore avenues for better real estate deals that will yield 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 vital to ensure that you optimize the rental income for every property you do own. You may be wasting out on additional earnings without even knowing it. There are several successful ways to increase your rental income on an existing property. Upgrading your property’s condition may let you charge more rent, and as long as it is performed inexpensively, it can be pretty effective. It’s also critical to decide 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 want to consider bringing in Fairfax 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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