Friday, May 5, 2017

Where to be a Landlord: Where to Buy Homes for the Best Rental Returns

CNBC's Diana Olick writes:

Interest rates remain remarkably low, which makes financing an investment home easier. Low rates also have investors looking for higher yield, and single-family rental homes are an attractive option...

Like all real estate, investment returns are variable and local. Markets that command the highest rents do not always offer the highest rental returns. HomeUnion, which helps investors obtain and maintain rental properties, ranked the 10 best and 10 worst markets for real estate investing in the first quarter of this year, based on first-year returns, or the "capitalization rate":


RW note: Many on the "best markets" list are also cities that have not been as strongly impacted by the recent overall boom in housing prices (check out Pittsburgh) so when the inevitable bust phase of the Fed created boom-bust cycle occurs there won't be as much downside. (Though most are up over the last 52 weeks)

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