Thinking of becoming a landlord? Then you might want to take a look at this. Real estate data company RealtyTrac released numbers today ranking the top 25 markets with hidden gems: inexpensive single-family homes with strong returns from rental income.
The crash in housing prices has made this an attractive time to buy income property — a fact not lost on the big institutional investors. And mortgage rates are still low, too, shrinking the barrier for the little guy who might not be able to pay cash.
RealtyTrac has identified the top overlooked markets, he says — “where single-family rentals still make good financial sense but where there is little to no competition from the big players.â€
1. Wichita Falls, Texas
Institutional investor sales: 5%
Unemployment rate: 6.8%
Median market value of a three-bedroom single-family home in August: $84,000
Median rent price for a three-bedroom single-family home in August: $938
Gross rental yield (annual gross rental income divided by median market value): 13.40%
2. Lubbock, Texas
Investor sales: 5%
Unemployment: 6.1%
Median home value: $111,000
Median rent value: $1,089
Gross yield: 11.77%
3. Oklahoma City, Oklahoma
Investor sales: 4%
Unemployment: 4.9%
Median home value: $131,000
Median rent value: $1,176
Gross yield: 10.77%
Source:
in Science
Hot Housing Markets Overlooked by Big Investors
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