The Smartest (and most lucrative) Way to Rent for singles

Before delving into different facets of renting, I want to preface with a basic understanding: When the market is hot, renting is not. When the market corrects, rents tend to increase quite a bit since the demand to rent is up for people want to weather the storm. In Orange County, annual rents increase an average of 5.5%. LA increases at over 6% annually, while San Diego is around 5% as a whole. The Inland Empire is different right now it that there are many foreclosures out there, meaning many people are looking to rent.

Now back to the point. Renting serves a few purposes: You just can’t afford to buy with bad credit or lower income, you know you won’t be staying where you are living for more than two years, just temporary, or you lack commitment. The commitment issue sounds silly, but its true and you know who you are (or at least your past relationships do.) Now all humor aside, these are very good reasons to rent.

If none of those reasons apply to your situation, then considering getting in the market should be your goal. If you love your roommates and don’t want to leave them, don’t. Also, if you don’t currently have a roommate and wouldn’t mind having one, go for it.

The Smartest way to rent if you know you’ll be where you are for a while is to buy and rent out!! Not only will it reduce your mortgage payment, but will allow you to claim it for taxes, allow you to make money over time, and call the place yours. Just imagine…