Area mostly homeowners, does this make a difference when looking for investment prop?
I am looking at an area where about the majority of homes (SFH) are owned not rented. Not sure if these numbers are accurate but about 83% owned/17% rented (according to Niche website). There are very few rentals in this area.
Does this make a major difference? Is it good to look for properties for LTR in this area since competition is low? Or will this be more difficult to rent?
Thanks!
@Mike Arias active lease listings change all the time. So I always run rent comps for my clients to see what the average days on market is, as well as, average rents. These are the numbers you should focus on. If low days on market then usually combination of factors, lack of rents, great schools, nearby amenities/shopping, etc. Note, here in the Dallas/Ft. Worth area SFR days on market are 17 days or less. So they tend to move quickly due to high demand. But, I would suggest you mention the area in question to get other investors feedback on this area too. Many that post on BP are here to help. So more info you give us the more actual help you will get.
Hey @Mike Arias,
While I wouldn't necessarily call that stat a dealbreaker, it is definitely important and something that I always make sure to pay attention to. Generally speaking, a higher percentage of renters compared to owners in a town is a better sign for landlords--it shows that housing affordability is skewed in the direction of renters, which bodes well for demand.