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Top Residential Rental Income Property Markets

Top Rental Property Market – Atlanta

Why Residential

Nearly 4 million families have been pushed into the rental markets since the great recession began and the housing bubble burst. At the same time the supply of habitable rental units has shrunk substantially. The result is that rents are rising and investors are moving in for the returns. The National Association of Realtors projects a 4% average increase in rents nationally this year and 4% in 2013. Goldman Sachs economists estimate that rental properties (acquired at today’s prices) are yielding more than 6% on average nationwide.

The residential income property market is changing as investors, ranging from large private equity funds and REIT’s to ­local rehabbers are moving into residential housing. Even Warren Buffett is bullish on single-family homes as an attractive investment now. The National Association of Realtors estimates investors accounted for 1.23 million home purchases, so investors are purchasing between 1/4 to 1/3 of all the residential properties on the market. Investment property broker, Robert Stec say’s “Today’s investors are really focussed on operating expenses and net yields unlike the mid 2000s speculators we saw in Vegas, Phoenix & Miami buying condos just hoping to flip them for a quick profit”

Last year half of investment purchases were for cash . The median price paid was $100,000, up 6.4% from $94,000 in 2010. If buyers are planning to flip a property these days, it’s usually after fixing it up.  The market today is better served as investors are looking for a long-term, stable income. And with investors getting returns paying more than the 2% current yield on ten-year Treasuries it is not wonder why their is so much demand for investment grade residential properties.

CNN rank’s these 10 cities as some of the best markets in the U.S. to buy rental properties. CNN collected data from Rent Jungle, National Association of Home Builders, HomeVestors and National Association of Home Builders. They then ranked cities by estimated future returns investors can expect when they buy single-family homes with the intent to rent the properties.  A baseline projected national average future return of 5% was used. As an investor however, if you’re going to take on the risk of owning an investment property, you need to have a shot at getting a very nice return.

Investor Tip: The Buyers Utopia network suggests only dealing with investment properties that can produce at least a 10 percent return on your investment.  Contact Us For Opportunities

Residential Cash Flow Positive Income Properties

All income properties have been fully rehabbed have tenants in place prior to closing and include property management !

Residential Income Property

Descriptions

Note Cash on Cash Returns vary by market from 8% - 12%

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CNN rank’s these 10 cities as some of the best cities in the U.S. to buy rental properties.


Las Vegas Residential Income Property Top Market

Las Vegas
Las Vegas Median home price in 2012: $122,000
Las Vegas Projected home price in 2015: $121,087
Las Vegas Projected annual rent in 2015: $12,829

Detroit Residential Income Property Top Market

Detroit
Detroit Median home price in 2012: $78,000
Detroit Projected home price in 2015: $93,982
Detroit Projected annual rent in 2015: $9,016

Daytona Residential Income Property Top Market

Daytona Beach, Fla.
Daytona Median home price in 2012: $114,000
Daytona Projected home price in 2015: $123,282
Daytona Projected annual rent in 2015: $11,048

Orlando Residential Income Property Top Market 

Orlando, Fla.
Orlando Median home price in 2012: $115,000
Orlando Projected home price in 2015: $150,491
Orlando Projected annual rent in 2015: $13,105

Warren Residential Income Property Top Market

Warren, Mich.
Warren Median home price in 2012: $114,000
Warren Projected home price in 2015: $116,706
Warren Projected annual rent in 2015: $9,308

Bakersfield Residential Income Property Top Market

Bakersfield, Calif.
Median home price in 2012: $115,000
Projected home price in 2015: $135,660
Projected annual rent in 2015: $10,628

Phoenix Residential Income Property Top Market

Phoenix
Phoenix Median home price in 2012: $135,000
Phoenix Projected home price in 2015: $162,053
Phoenix Projected annual rent in 2015: $12,268

Atlanta Residential Income Property Top Market 

Atlanta
Atlanta Median home price in 2012: $122,000
Atlanta Projected home price in 2015: $164,253
Atlanta Projected annual rent in 2015: $12,255

Reno Residential Income Property Top Market

Reno, Nev.
Reno Median home price in 2012: $137,000
Reno Projected home price in 2015: $152,509
Reno Projected annual rent in 2015: $11,366

Tampa Bay Residential Income Property Top Market

Tampa, Fla.
Tampa Bay Median home price in 2012: $100,000
Tampa Bay Projected home price in 2015: $150,271
Tampa Bay Projected annual rent in 2015: $11,186

 

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