the 2018 Neighborhood Housing Index published by ATTOM Data Solutions, which analyzed nearly 11,000 U.S. neigh- borhoods based on neighborhood quality (i.e. schools, crime etc.) along with poten- tial yields for single family rentals. ATTOM found that among 2,188 neighborhoods with the highest neighborhood quality — those neigh- borhoods 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 Penn- sylvania, Tampa-St. Petersburg, Florida, and Louisville, Kentucky. No matter what market you’re buying in, it always pays to be extra dil- igent 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 via- bility 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 re- turns within your investment criteria. •
MEDIAN HOME PRICES AND FAIR MARKET RENTS
Median Home Price for Single Family Homes and Condos
Average HUD Fair Market Rent for 3-Bedroom Property
$300,000
DAY AFTER CHRISTMAS IS THE BEST DAY TO CLOSE ON A HOME PURCHASE Buyers willing to close on a home purchase the day after Christmas realize the biggest discounts below full market of any day in the year, according to an ATTOM Data Solutions analysis of more than 18 million single family home and condo sales over the past five years. In the hot sellers’ market of the past five years, only 10 days of the year offer discounts below estimated market value — seven in December, and one each in October, November and February.
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2006 2007 2008
2009
2010
2011
2012
2013 2014 2015 2016 2017 2018
Source: ATTOM Data Solutions, HUD
part of the “first wave” of institutional investment in the sector. During the first wave, markets like Atlanta, Char- lotte, Dallas, Phoenix, Jacksonville and Orlando attracted unprecedented cap- ital from institutions, but have caused many investors to seek opportunities off the beaten path. Cities like Memphis, Denver, Phila- delphia, Pittsburgh, Columbus, Charles- ton 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 every- day investors. For more promising SFR investment opportunities, investors would be wise to heed HouseCanary’s advice on sizing up potential invest- ments, and look for opportunities in niche, but promising markets. “Homes located near good schools and public transportation, homes locat- ed 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 con- tributor, 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
Kevin Ortner is the President and CEO of Renters Warehouse, one of the fastest-growing and highest-reviewed residential property management
For this analysis ATTOM Data Solutions looked at any calendar day in the last five years (2013 to 2017) with at least 10,000 single family home and condo sales. There were 362 days that matched this criteria, with the four exceptions being Jan. 1, July 4, Nov. 11 and Dec. 25. To calculate the premium or discount paid on a given day, ATTOM compared the median sales price for homes with a purchase closing on that day with the median automated valuation model (AVM) for those same homes at the time of sale.
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.
Go to www.attomdata.com/news to read the full article. Copyright © 2018 ATTOM Data Solutions – All rights reserved
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