FEATURE
THESE 10 MARKETS REPRESENT SUBSTANTIAL OPPORTUNITY TO THE INVESTORS WHO CHOOSE TO BECOME INVOLVED IN THEM IN AN EFFECTIVE WAY AT THIS POINT IN TIME ACCORDING TO OUR ANALYTICS. “
portedly struggling to “make the leap” to homeownership these days, the city is hot for investors in turnkey rental properties and multifamily housing. Strong year-over-year employment and income growth (3.7 percent and 1.8 percent, respectively) make it unlikely that residents will be heading
who often have more funding flexibil- ity than banks and who can purchase turnkey rental properties to generate cash flow. But due to Or-
be doing what economists hope other West Coast markets will do in the next 12 to 24 months: level off instead of dive downward when they become too off-balance. Although investor share of purchases in San Diego is at a six-year low, this market could soon be in transition, opening it up to more investors who are prepared and watching for signs that it is time for a reentry. Tampa, Florida Tampa, Florida, has a huge dis- tressed inventory (the third-highest in the country) and, like our other Florida cities, represents great potential for real estate investors hoping to get in early on something that others have missed. Tampa often gets left off these “Big 10” lists due to a slightly smaller population
lando’s heavy reliance on tourism, at some point the afford- ability issue is likely to catch up with the market because wages will not keep up with home prices. When that happens, an inves- tor positioned in turnkey
out anytime soon, so both housing and rental mar- kets are looking good in this metro area. For those who can afford to buy, the market is great, as they’ll break even compared to local renters’ costs in about a year and five months. Many buyers clearly see the value of
rentals will be well-prepared to cater to a population opting or finding itself compelled to rent instead of buy. At present, however, wholesaling, flipping and rentals are all well-positioned in the area as long as an investor does due diligence thoroughly prior to deciding on a strategy for an individual property. San Diego, California San Diego, California, makes just about everyone’s “hot housing” list, and that often means that an area will not be a particularly friendly one for real estate investors. How-
owning, with home sales volumes in the area rising 3.9 percent over the last 12 months and home values rising 10.2 per- cent. Investors planning to sell to own- er-occupants must remember, though, that at present nearly half of all Nashville residents are already paying a third or more of their income on rental housing. That will make it difficult to save for a down payment but certainly makes owning rental properties a viable,
than many other major metros. But with 11.4 percent appreciation, huge attraction for Baby Boomer buy- ers who actually
have the wherewithal to purchase at retail and at competitive pric-
attractive option since that population is likely to stay in place and continue paying competitive rents. Orlando, Florida Orlando, Florida, is definitely
ever, in San Diego, the market appears to be a bit differ- ent than in many
es, falling number of days on market and an inventory that has just started to trend downward in a meaningful pattern, Tampa represents a truly hot opportunity for real estate investors looking to get into a market, control some distressed inventory and make their mark on local housing. • Carole J. Ellis is the host of Real Estate Investing Today, a daily nine-minute investing podcast, and the editor of the Bryan Ellis Investing Letter. www.investing.bryanellis.com
West Coast markets, thanks to rising sales volumes as well as rising home prices. According to
hot for investors, even if the aver- age homeowner isn’t too happy there these days. The metro area posted the fourth-highest percentage of distressed home sales in the country during the first part of 2016 (nearly one in every five transactions was distressed) but home values are rising in the area while affordability is actually falling. On the surface, this is great news for investors
CoreLogic, the median price of a San Diego County home was $490,000 in May 2016, up 6.8 percent in the last 12 months, and home sales volume was up 5.6 percent from two months prior. This could indicate that although affordability is still a very serious issue in San Diego, the market could
6 | INVESTOR REVIEW
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