1. You can find deals if you are willing to work at it. In a lot of areas, it is a buyers market. With the tax credits gone there is not as much competition to buy. It is always hard to predict the bottom but Denver looks as if it has leveled off and in some areas prices are increasing.
2. Mortgage interest rates are low. The down payment for investment homes can be 20% or more depending on if you want to cash flow the property. Interest rates are definitely cheaper than at any time in recent history so this is a great time to invest.
3. You’ll save on taxes. The mortgage interest you pay can be deducted from your taxes. You can also write off improvements as well as other expenses related to the operation of your rental.
4. Rentals offer some inflation protection. Nothing is perfect but over long-term housing tends to beat inflation by a few percentage points a year. Since a lot of investments have not had a good return recently, rental housing can have better yields than other forms of investments like bonds or mutual funds.
5. There is a lot to choose from. With houses going into foreclosure and the regular sales market, there are a lot of homes on the market. Many of the homes need a little work and as an investor you may get a better deal. This way you can do some improvements to the property and increase the properties value as well as your rental income.