The Best Markets for Real Estate Investors in 2021


by Rick Sharga, RealtyTrac

or investors looking to venture forth beyond their backyards in search of the ultimate investment

flipping sales and home flipping profit margins declined across the U.S. in 2020, with just 241,630 single family homes and condos flipped, down 13.1 percent from 2019. Flips in 2020 generated an average gross profit of $66,300 nationwide, up 6.6 percent from $62,188 in 2019. The 2020 year-end home flipping analysis stated that among the 6,806 U.S. zip codes included in the analysis, there were 10 with a population of 5,000 or more and at least 10 home flips in 2020 where flips accounted for at least 25 percent of all home sales last year: 38116 in Shelby County, TN (31.5 percent); 45207 in Hamilton County, OH; 38127 in Shelby County, TN (28 percent); 38115 in Shelby County, TN (27.8 percent) and 38128 in Shelby County, TN (27.5 percent). The typical gross profits in those top 10 zips with the most homes flipped in 2020 were: 38127 – Mem - phis, TN ($50,200); 85142 – Queen Creek, AZ ($37,001); 34668 – Port Richey, FL ($53,250); 37042 – Clarksville, TN ($53,700); 85138 – Maricopa, AZ ($27,250); 85351 – Sun City, AZ ($53,875); 85032 – Phoenix, AZ ($81,300); 08757 – Toms River, NJ ($112,250); 28269 – Charlotte, NC ($24,000); and 38128 – Memphis, TN ($49,900). OPPORTUNITIESARE EVERYWHERE – IFYOU KNOWWHERE TO LOOK Most seasoned investors believe there are opportuni- ties in virtually every market, for investors who are willing to do their homework. Visit RealtyTrac to find the best deals on foreclosure properties across the country. •


opportunities, where are the ideal locations to invest in real estate? RealtyTrac’s parent company ATTOM Data Solutions has released two reports that identify some of the best markets in the country for real estate investors. BEST SINGLE-FAMILYRENTALMARKETS For single-family rental investors, ATTOM’s 2021 U.S. Single Family Rental Report analyzed data from 495 U.S. counties, showing that the average annual gross rental yield so far in 2021 is 7.7 percent, down from an average of 8.4 percent in 2020. According to the report, counties with the highest potential annual gross rental yields for 2021 include Schuylkill County, PA, (26.1 percent); Bibb County, GA, (18.1 percent); Baltimore City/County, MD (16.2 percent); La Salle County, IL, (14.1 percent) and Chautauqua Coun - ty, NY (13.7 percent). ATTOM also ranked the top 10 “SFR Growth” coun- ties with the greatest annual increases in rental returns, among those counties where average wages grew over the past year and the potential 2021 annual gross rent- al yields were above 10 percent: Calcasieu County, LA (29.7 percent increase from 2020); Erie County, PA (13.4 percent increase); Licking County, OH (13.3 percent increase); Delaware County, IN (12.7 percent increase); Tazewell County, IL (12.2 percent increase); Lorain Coun - ty, OH (12.0 percent increase); Wichita County, TX (10.9 percent increase); Clark County, IN (7.4 percent increase); Bibb County, GA (5.8 percent increase); and Miami Coun- ty, OH (4.2 percent increase).

Rick is the Executive Vice President of RealtyTrac, a leading foreclosure search and discovery website used by real estate agents and investors. One of the country’s most frequently-quoted sources on real estate, mortgage, and foreclosure trends, Rick has appeared on CNBC,

BESTMARKETS FOR FIX-AND-FLIP INVESTORS ATTOM also recently released its 2020 Year-End U.S. Home Flipping Report, which revealed that both home

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