Most people are aware that investing in Irvine single-family rental properties can be a great way to develop wealth over the long term. But what do real estate investors make from year to year? It’s a good question and one that can have a lot of various answers. Let’s take a closer look at how much real estate investors make and what steps 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 imperative to note 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
As soon as 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.
Following monthly property expenses are taken into account, rental income can be quite modest, especially for investors who are just beginning. But as the upper end of the average salary shows, some rental property investors make six-figure incomes on top of the value of the property assets they hold.
Why Aren’t the Numbers More Specific?
It can be hard to pin down how much a rental real estate investor makes because an investor’s income depends upon a range of different factors. From how much cash flow each property generates month-to-month to how many properties you own and how often you buy more.
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
If you are seeking to grow your way into a healthy salary as a rental property investor, there are things that you can do to make it happen. 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 missing out on additional earnings without even realizing it. There are many efficient ways to increase your rental income on an existing property. Improving your property’s condition could allow you to charge more rent, and as long as it is done inexpensively, it can be extremely effective. It’s also important to determine 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 Irvine 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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