MARKET BREAKDOWN
TURNKEY
#1 Macon, GA (metro area)
#2 Toledo, OH (metro area)
Bibb County
Lucas County
Think Realty’s 2018Mid-Year List of Notable Turnkey Rental Real Estate Markets WHAT HAPPENS WHEN YOU TAKE A DEEP DIVE INTO CASH-FLOWING TURNKEY MARKET DATA?
10th for single-family rental (SFR) returns for 2018
2nd for single-family rental (SFR) returns for 2018
ATTOM Data Solutions
ATTOM Data Solutions
TOP EMPLOYMENT SECTORS
TOP EMPLOYMENT SECTORS
Trade, Transportation & Utilities 19.1%
Education & Health Services 17% Job volume in this sector up 1.4% year-over-year
Government 15%
Government 33.1%
Trade, Transportation & Utilities 24.6%
Education & Health Services 16.7%
by Carole VanSickle Ellis
T
urnkey real estate investing, the strategy of purchasing real estate investments that will be managed, ideally A-to-Z, by another party, is one of the most popular ways for capital-rich investors to place assets in a real estate invest- ment vehicle, such as a cash-flowing turnkey rental property. These properties may be: • purchased for cash or using leverage • obtained remotely via an investor’s agent, in person, or using one-click online services • managed in part or whole by third-party property managers • located anywhere in the world where the assets meet the turnkey investor’s strategic needs and goals. The remote aspect of turnkey rental ownership makes due diligence -- not just on the turnkey service provider but also on the real estate market in question -- vitally important. The following list of “notable” turnkey markets of potential interest to real estate investors for varied reasons, including: • Significant past performance • Substantial signs of opportunity • Major employer movement or employment trends
• Attractive renting population • Opportunity for strategic turnkey creativity • Potential pitfalls that might be leveraged for investment gain
Yardi Matrix
Yardi Matrix
Top Six Employers in the Region: NO. 1 Medical Center of Central Georgia - 6,200 employees NO. 2 GEICO - 5,000 NO. 3 Bibb County Board of Education - 3,700 NO. 4 Coliseum Health System - 1,400
Top Six Employers in the Region: NO. 1 ProMedica Health Systems - 14,465 employees NO. 2 Mercy Health - 8,827 NO. 3 University of Toledo - 6,662 NO. 4 Whirlpool Corporation - 6,182 NO. 5 FCA US LLC - Automotive - 6,159 NO. 6 Bowling Green State University - 3,399 (Regional Growth Partnership Northwest Ohio) Strategic notes: • 3rd-most-affordable housing market in the United States (National Association of Home Builders/Wells Fargo Housing Opportunity Index) • Lowest median home price in the country as of Q1 2018: $66,979 (WalletHub)
*Note: Because of the diverse array of factors we considered, these markets are not numerically ranked. They are described first by metro area, then by county and metropolitan statistical area (MSA).
NO. 5 City of Macon - 1,142 NO. 6 Mercer University - 900
WHAT TO THINK ABOUT FALLING RENTAL RETURNS
(Macon Economic Development Commission)
You’ll notice some of these markets had “better” years in 2017 for annual gross rental returns than they are posting in 2018. They remain “notable” due to long-term, above-average performance, potential economic growth, positive potential in the real estate environment in the broader region, and/or for out- performing the field despite a decline in ROI.
Strategic notes: • 11.5 percent of investment properties in the area are vacant • Labeled a “vulnerable older industrial city” by the Brookings Institution last year based on trends in “growth, prosperity, and inclusion.”
56 | think realty magazine :: july 2018
thinkrealty . com | 57
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