RealtyTrac has developed a list of the 20 best real estate markets across the nation, for investors looking to purchase single family homes as rentals. The analysis uses the average sales prices and rental rates for 3-bedroom homes, calculating capitalization “cap” rates and average cash flows. The cap rate is percent of net income compared with the purchase price of the home. RealtyTrac explains cap rate like this: “…a home purchased for $100,000 that generates $500 in positive net cash flow each month would have a 6% cap rate ($500 multiplied by 12 = $6,000, divided by the original $100,000 purchase price).” The results are very good news for Ocala Florida home owners and realtors alike. Below is the list of the top 20 markets:
Las Vegas, NV
Palm Bay, FL
Port St. Lucie, FL
Kansas City, MO
MSN Real Estate mentioned in their article refering to the RealtyTrac list that Memphis was already getting attention from foreign investors. This is all very good news for local home owners, investors, and the Real Estate community – as activity increases and available real estate inventory decreases, home values will rise!
Landmark mortgage has a wide range of mortgage products available for investors, and would welcome the opportunity to discuss them with prospective real estate investors and their realtors. Working together with the realtor we can help investors make sound investment decisions with calculated returns. If you would like to schedule an appointment either by phone or in person, please click on the button below. Also, if you are an investor looking for a quality referral to a realtor in the area, we would like to help – just contact us.
Original RealtyTrac Article – April 3, 2013
Best cities to invest in single-family rentals, April 5, 2013