WHY BUY INVESTMENT PROPERTY IN SOUTHCENTRAL IDAHO? If you had been in on the ground floor of the upward appreciation of real estate in the California market, or in a number of other areas just like it, you would know why the time is ripe to invest in real estate in south central Idaho. The area has been experiencing rapid growth for the past few years, with many new residents coming from other states. The demand for housing and commercial property had been high and the building industry has moved quickly to fill the need. Last year, there was a 30% increase in building permits issued by the City of Twin Falls.* Property values have increased dramatically during the past few years. Last year alone, prices went up almost 25%. The sales of single family homes has slowed in the past few months, in response to news of the national housing market problems, but, there have been few sub-prime loans made here and few foreclosures, and new major commercial development continues throughout the area. In 2007, residential values actually increased by 10%. But, it is definitely a buyer's market right now, and there are great opportunities for investors. We believe that the demand for housing will pick up quickly in response to the commercial development, new jobs and need for new employees. The rental market continues to be strong. Remember, that more people have become millionaires through real estate than any other way! There are a number of reasons that real estate in the Twin Falls area makes such a good investment. Here are just a few: - FAVORABLE FINANCING: Interest rates are still very favorable and there are great “investor” rates available. This translates into lower monthly payments and a positive cash flow for the investor. Look at the lender information available under the Favorite Links feature for some examples.
- LEVERAGE. It is quite possible to purchase a $150,000 home with a 10% ($15,000) down payment, and sometimes less. If you invested the same amount of money into the stock market, or some other investment and your return for the year was 10% ($1,550), your investment would be worth $16,500 at the end of that first year. If your $150,000 real estate purchase also went up by 10% that first year, it would then be worth $165,000, so your $15,000 investment would have doubled in value. You earned a 100% return on your investment.
- POSITIVE CASH FLOW. Because of the favorable financing, low initial cost of property in the Twin Falls area, and good rental values, it is not unusual to have a monthly income from your real estate investment, over and above your expenses. This is possible with even a minimum down payment in many cases.
- YOUR TENANTS PAY FOR YOUR INVESTMENT. The rent you receive each month normally covers your expenses. In addition, your equity position increases as each mortgage payment is made.
- APPRECIATION. As indicated above, the value of property in south/central Idaho has been increasing over the years and exponentially in the last couple of years. There is no indication that this trend will abate. Even so, there are several single family homes available in our market area between $58,000 and $80,000.
- FAVORABLE TAX LAWS. The IRS Code dealing with investment property offers a number of tax advantages over other investments and over those available with a personal residence. Investors can write off the annual interest paid, the property taxes, insurance on the property and almost all other expenses, including repairs. In addition the tax code assumes that the property is going down in value, even though the opposite is true, and investors can depreciate the property over a scheduled number of years.
Don’t forget, for you out of area investors, we can recommend excellent local property managers, who will help you find tenants and send you reports to complete your state and federal income tax. This means that you can concentrate on your job and your property manager will concentrate on your investment. *Courtesy of the City of Twin Falls, Idaho
Here's a Sample of Investment Properties Available: Turn-Key Investment Property - Positive Cash Flow Possible: INVESTORS: Popular Renaldi Breeze plan features an open floor plan, large master suite with walk in closet, covered porch, seperate laundry room, pantry and central air conditioning. Includes: dishwasher, garbage disposal, microwave, free standing stove & oven, air conditioning, pantry. Renaldi quality throughout! This home is currently leased for $795 per month. This price also includes front landscaping, sprinklers and partial fence. Fantastic Duplex for Investor: $258,700 - 3 bedroom 2 bath two level with 2 bedroom 1 bath up, 1 bedroom 1 bath on the main level, 1 car garage. Units to be completed end of June 2008
Custom-Built Duplex: $249,00 -The front unit rents from $2500 per month, and the rear unit for $950 per month for a positive cash flow! These near new units are priced at only $71.84 per square foot. You can't build them for that price.
Newer 4-Plex's with a positive cash flow with only 20% down There are 5 of these available. Buy one or buy them all. They are all 2 bedroom, 2 bath units with wall air conditioners. Tenants pay for electrical. Owner pays for water an association fee. Price: $269,900 per building -- down from $309,000. Average Rent: $595 per unit, which equals an average rental income per month of $2,380. Homeowner's association assures you that grounds and buildings will be maintained. Located in a great area. Call or email for details. 
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