Housing-News-Report-October-2018

HOUSINGNEWS REPORT

BLURRED STATE LINES BENEFIT SFR INVESTORS

Cities like Memphis, Denver, Philadelphia, Pittsburgh, Columbus, Charleston and Detroit make the list of new markets attracting investors of all sizes. As macroeconomic drivers change, new geographies come into focus for the second wave. Investors can also use real estate data analytics company HouseCanary’s helpful rental index tool to analyze a prospective property’s performance — no matter where it’s located. With this tool, investors can see the effective gross yield for rental properties across each of the 50 states, or even check the yield of individual metropolitan areas. Of course, extremely hot markets may be largely out of the reach of everyday investors. For more promising SFR investment opportunities, investors would be wise to heed HouseCanary’s advice on sizing up potential investments, and look for opportunities in niche, but promising markets.

“Homes located near good schools and public transportation, homes located near significant local landmarks or attractions, and homes with attractive attributes and features are often able to rent (or sell) for above the local average fair market value,” Alex Villacorta, HouseCanary’s executive vice president of analytics, recently told Forbes contributor, Ellen Paris. “That’s why even in areas with low EGY (effective gross yield) relative to the national average, you can almost always find homes that have higher-than-average EGY.” The availability of “diamond-in-the- rough” single family rentals is evident in the 2018 Neighborhood Housing Index published by ATTOM Data Solutions, which analyzed nearly 11,000 U.S. neighborhoods based on neighborhood quality (i.e. schools, crime etc.) along with potential yields for single family rentals.

neighborhood quality — those neighborhoods were assigned an “A” rating — there were 494 with an annual gross rental yield of at least 10 percent, led by neighborhoods in Fayetteville, North Carolina, Sarasota, Florida, York Pennsylvania, Tampa-St. Petersburg, Florida, and Louisville, Kentucky. No matter what market you’re buying in, it always pays to be extra diligent when searching for an investment that will perform well. Never operate on assumptions, and don’t neglect to run the numbers; always ensure that they’re in line with your investment goals. At the end of the day the success of your investment will depend upon the viability of your individual purchase — so look to buy property that’s undervalued, or work to negotiate a deal so that the terms will put your projected net returns within your investment criteria.

ATTOM found that among 2,188 neighborhoods with the highest

RENTAL RETURNS BY NEIGHBORHOOD A B C D F

KEVIN ORTNER

Kevin Ortner is the President and CEO of Renters Warehouse, one of the fastest-growing and highest- reviewed residential property management companies in America. Kevin is the author of Rent Estate™ Revolution, which shares the Renters Warehouse philosophy and business expertise around single-family rentals and the power of Rent Estate to drive long-term wealth creation, retirement security and financial freedom for the everyday person.

CLICK HERE TO VIEW INTERACTIVE VISUAL

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OCT 2018 | ATTOM DATA SOLUTIONS

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