Future Rental prices

[Devang Patel]

I just closed on my first cash flow property a few weeks back and I am very excited.  My question is in regards to the future of rental prices.  As a cash flow investor, current rental rates are very appealing.  However, what is the expected future of rent?  It almost seems eventually these rent prices have to go down since they are so high historically.  I am worried I invest in 6-7 properties only for my monthly cash flow to be cut due to a dramatic drop in rent prices.

[Steve Vaughan]

Congratulations on your first CF property!  Rent rates are a factor of supply and demand.  Are macro factors like job growth and population growth outpacing the rate of new apts/rentals being built or coming on the market?  In my area hundreds of new-build units are coming on the market after years of under-supply.  I am not buying the same type/style/location/price range of these new units.   Hopefully employment and population growth exist near your rentals.  In the meantime be a rockstar property manager, keeping your property up and take care of your tenants.  It's good you recognize you have a good thing going.  Work hard to keep it.  Happy tenants don't look for new places to live as much!