According to The National Association of Realtors, there is a housing supply crisis. This crisis is impeding new buyers from entering the housing market and as a result, policy makers are looking for ways to increase housing inventory.
One notable way that was purposed, which could affect Real Estate Investors is to “Increase housing supply by promoting conversions of older or underutilized commercial space.” Are you wondering how this could affect Real Estate Investors?
As an investor, you may not be fully ready to get into the builder’s game and begin building new construction. However, a natural progression from buying small rental units could be to renovate, some of these older or underutilized commercial spaces and turn them into apartments.
Selling your smaller investment properties in this current up market can give you significant seed money to invest into buying and converting one of these commercial properties, to turn into a large investment property as opposed to having multiple smaller properties. In some cases, there may even be government funding in your area, to help with the conversion.
This idea is worth the progressive Real Estate Investor, who wants to increase their portfolio, to consider.
Seekia Morrison, Real Estate Broker
West East Real Estate